Capital adequacy ratios

 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 .   

IPCC II - Accounting (new )  I am not sure  about  new ( old course - P.E course II) .