Examples of Risk Weighted Assets in a sentence
As per Basel III guidelines, the Bank is required to maintain a minimum Capital to Risk Weighted Assets Ratio (CRAR) of 9% {11.5% including Capital Conservation Buffer (CCB)}, with minimum Common Equity Tier I (CET1) of 5.5% (8% including CCB) as on 31st March 2019.
The first section of the Basel III framework covers the rules by which Risk Weighted Assets (RWA) and capital adequacy must be calculated.
As per capital adequacy framework, the Bank is required to maintain a minimum Capital to Risk Weighted Assets (CRAR) of 15% with minimum Tier I capital as 7.5%.
A summary discussion of the Bank’s approach to assess the adequacy of its capital to support its current and future activities:Capital requirements for current business levels and estimated future business levels are assessed on a periodic basis.As per RBI guidelines for SFBs, minimum capital required to be maintained by the Bank is 15% of the Risk Weighted Assets.
The capital charge thus calculated is converted into Risk Weighted Assets.