Best's Capital Adequacy Relativity

Definition

  • A method used to determine the relative capital strength of a company as compared to an industry peer composite.

Synonyms
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 estimation of a property's price value through an appraisal.
    • The process of finding the worth of an asset or business.
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