Concept: capital adequacy ratio, capital? Sufficiency? Proportion? (car),? Also known as capital risk asset ratio. Capital adequacy ratio is the ratio of bank assets to their risks. National regulators track the capital adequacy ratio of banks to ensure that banks can absorb certain risks. Capital adequacy ratio is a necessary capital ratio to ensure the normal operation and development of financial institutions such as banks. Financial management authorities in various countries generally control the capital adequacy ratio of commercial banks, with the aim of monitoring the ability of banks to resist risks. Capital adequacy ratio has different calibers. The main ratios are the ratio of capital to deposits, the ratio of capital to liabilities, the ratio of capital to total assets and the ratio of capital to risky assets.
Institutional scope:
(1) Invested financial institutions in which commercial banks have more than half (excluding half) equity capital, including:
(1) The invested financial institution in which the commercial bank directly owns more than half of the equity capital;
A wholly-owned subsidiary of a commercial bank is an invested financial institution with more than half of its equity capital;
(3) Commercial banks and their wholly-owned subsidiaries are all invested financial institutions with more than half of the equity capital.
(2) The equity capital owned by a commercial bank does not exceed half, but it should be included in the consolidated scope if it is under any of the following circumstances with the invested financial institution:
(1) Holding more than half of the voting rights of this institution through agreements with other investors;
(2) Have the right to control the financial and business policies of the institution according to the articles of association or agreement;
(3) Have the right to appoint or dismiss most members of the board of directors of the institution or similar authority;
(4) Having more than half of the voting rights in the board of directors of the institution or similar authority.