Divya Priya (student) 21 October 2020
what is Capital adequacy ratios in Banks? How to study it in detail?
How this affects banking sector?
prasad Nilugal (Sr . Accountant and GST Practitioner . ) 21 October 2020
Ratio is for minimum capital requirement as per the statutes
Capital adequacy ratio worked out as follows
Capital fund * 100 / Risk weighted assets and off balance sheet items
Also capital fund define to two Tier-I and Tier-II
Tier I - core capital for permanent support against unexpected losses
Tier II - capital is less permanent and support against unexpected losses .
prasad Nilugal (Sr . Accountant and GST Practitioner . ) 21 October 2020
IPCC II - Accounting (new ) I am not sure about new ( old course - P.E course II) .
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