Respuesta :
While the capital adequacy ratio evaluates the risk-weighted asset to capital ratio (mostly loans), the leverage ratio divides available capital by total assets.
The capital to risk assets ratio (CAR) fundamentally evaluates financial risk by examining a bank's available capital about provided credit. It is expressed as a proportion of the bank's credit exposures weighted by risk. The CAR calculation is as follows: CAR = (Tier 1 Capital + Tier 2 Capital) / Risk-Weighted Assets. The Bank of International Settlements categorises capital into Tier 1 and Tier 2 based on its function and quality. Tier 1 capital is the fundamental indicator of a bank's financial strength. The tier 1 leverage ratio compares a bank's core capital to its total assets. The ratio assesses a bank's leverage about its consolidated assets, whereas the tier 1 capital ratio assesses the bank's core capital in relation to its risk-weighted assets.
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