IMF IMF 102d ago
Capital Adequacy Ratio

Capital Adequacy Ratio

How do we know whether banks are safe? In this episode of The Economy – How Do You Measure That?, Jim Tebrake and Mahmut Kutlukaya explain how the capital adequacy ratio (CAR) shows a bank’s ability to absorb losses—and why it matters for your deposits. Watch the video to see how trust in the banking system is measured behind the scenes.