Best's Capital Adequacy Relativity
- A method used to determine the relative capital strength of a company as compared to an industry peer composite.
adequacy ratio calculations
Related Terms and Acronyms
- Capital — Definition,
- Money that is used to make money; for example, to buy rental property or a business.
- Capital Adequacy Ratio — Definition,
- A ratio of total capital divided by risk-weighted assets and risk-weighted off-balance sheet items. A bank is expected to meet a minimum capital ratio of 8.0% unless a higher ratio is specifically prescribed by the Superintendent of Financial Institutions.
- Valuation — Definition,
- The process of finding the worth of an asset or business.
- The estimation of a property's price value through an appraisal.