When capital adequacy line is equal to the savings per worker function then "normal expected returns to investor".
<h3>What is
capital adequacy/requirement ratio?</h3>
The capital adequacy ratio (CAR) gauges a bank's level of capital retention in relation to its level of risk. The CAR of banks must be monitored by national regulators in order to ascertain how well it can withstand an acceptable amount of loss.
The components of capital adequacy are-
- The Capital Adequacy Ratio (CAR) aims to ensure that banks have an adequate amount of capital to safeguard depositors' funds.
- (Tier 1 Capital + Tier 2 Capital) / Risk-Weighted Assets is the calculation for CAR.
- The BIS's capital standards have tightened up in recent years.
- By reducing the likelihood of bank insolvency, capital adequacy ratios promote the effectiveness and stability of a country's financial system.
- A bank with a high capital adequacy ratio is typically thought to be secure and likely to fulfill its financial obligations.
The principle of capital adequacy are-
- High-quality and loss-absorbing capital are both necessary.
- The Basel III criteria for common stock, along with supplementary tier 1 and tier 2 capital, are applied to establish the quality of capital, with retained earnings being the most important factor.
To know more about the capital requirement, here
brainly.com/question/13676980
#SPJ4
I believe the answer is: A fly eats a piece of fruit;
From all organism on earth, those who obtain their food through photosynthesis are the one that contain the largest amount of energy, and the energy transferred would keep getting smaller as the organism being consumed by other organism. From the sample above, only trees where the fruit is hanging are the one that obtain their food through photosynthesis
Answer:
Explanation:
I do think so because They dont want their kids to feel less than the other kids. They dont want people to gossip about the fact that they need government assistants. Hope this helps
Answer:
The North thought it would win the Civil War because it had more industry. The South thought it would win because it had an excellent cavalry and well trained soldiers.
Explanation:
Answer:
B) joining the League of Nations
Explanation:
- The Washington advice was that the country should try to avoid the permanent alliance with the foreign nations as during the times of the extreme dangers may be necessary. And asserted that the current treaties should be honored but not extended.
