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Capital Adequacy Ratio (CAR) measures how much capital a bank has available.
It is calculated by dividing a bank's capital by its risk-weighted assets.
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It is calculated by dividing a bank's capital by its risk-weighted assets.
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This ratio establishes the amount of capital that banks have on reserve to be able to cope with certain amount of losses before being at risk of becoming insolvent.
The CBN requires all banks to have a minimum CAR of 15%.
The CBN requires all banks to have a minimum CAR of 15%.
The higher the CAR the more capable it is to survive a financial downturn or other unexpected losses.
GTB, Zenith and UBA have the highest CARs which stand at 28.19%, 23% and 22.4% respectively.
First bank has the lowest CAR (17.01%), indicating that it would be least able to deal with unforeseen losses.
First bank has the lowest CAR (17.01%), indicating that it would be least able to deal with unforeseen losses.
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