Capital Adequacy Ratio

Source: International Monetary Fund – IMF (video statements)

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.

https://www.youtube.com/watch?v=T5u9wNXcj20