Capital Adequacy Ratio: Asia vs. Europe vs. U.S. Banks

Asian banks in general have higher capital adequacy ratios than banks in Europe and the U.S. Large banks in Indonesia, Singapore and Taiwan have total capital adequacy ratios exceeding 15%. Source: REGIONAL ECONOMIC OUTLOOK, Asia: Consolidating Recovery, Building Sustainable Growth, IMFSurvey Magazine Capital adequacy ratio(CAR) “is a ratio of a bank’s capital to its risk”. …

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