CRAR Ratio: Essential Information for Investors and Analysts

Sneha Sharma21 Jun, 2024Finance

The Capital to Risk-Weighted Assets Ratio (CRAR), also known as the Capital Adequacy Ratio (CAR), is a key financial metric used to assess the stability and strength of a financial institution, particularly banks. It measures a bank's capital in relation to its risk-weighted assets. Essentially, CRAR indicates how well a bank can absorb potential losses and protect depositors and other creditors.