Capital adequacy ratio
= Capital adequacy ratio
{wiki=Capital_adequacy_ratio}
The Capital Adequacy Ratio (CAR) is a financial metric used to assess the stability and strength of a financial institution, particularly banks. It measures a bank's capital in relation to its risk-weighted assets (RWAs). The primary purpose of the CAR is to ensure that a bank has enough capital to cover its risks, thus protecting depositors and maintaining the overall stability of the financial system.