2006-07-08 23:29:21 · 3 answers · asked by ssahmad_yarub 1 in Business & Finance ➔ Corporations
A measure of a bank's capital. It is expressed as a percentage of a bank's risk weighted credit exposures.
This ratio is used to protect depositors and promote the stability and efficiency of financial systems around the world.
Two types of capital are measured: tier one capital, which can absorb losses without a bank being required to cease trading, and tier two capital, which can absorb losses in the event of a winding-up and so provides a lesser degree of protection to depositors.
2006-07-08 23:36:08 · answer #1 · answered by sheikaella 4 · 0⤊ 0⤋
Essentially it's a measure of whether or not you have enough financial resources to operate over the long haul. It's used to determine whether or not a company is in or heading for trouble down the road.
For example, if your average montly expenses are $1300, and all you have coming in is $550, then you'll have to dip into savings (past profits) to cover the rest. NOT a good situation to be in!
A HIGH ratio is a good thing! It means you have enough to cover yourself and you're not operating "behind the 8 ball."
2006-07-09 04:36:02 · answer #2 · answered by msoexpert 6 · 1⤊ 0⤋
Programming language application expenditures application producer an excellent style of money. evaluate spending money for a strong language translation application on account that i have not seen any free downloadable application. Microsoft has multi-language application that you will be able to acquire on condition that you've an exact Microsoft workplace adventure. yet i do not understand in the adventure that they have got translation application from English to Telugu language.
2016-10-14 06:44:08 · answer #3 · answered by machey 4 · 0⤊ 0⤋