Question
CRAR ensures that the bank can absorb a reasonable
amount of loss and complies with statutory Capital requirements. What does the ‘A’ stand for in CRAR?Solution
Capital to Risk (Weighted) Assets Ratio (CRAR) is also known as Capital adequacy Ratio, the ratio of a bank's capital to its risk. The RBI tracks a bank's CAR to ensure that the bank can absorb a reasonable amount of loss and complies with statutory Capital requirements.
RBI does not manage/influence?
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