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
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<u>Answer:</u>
<em>A) Lose, Gain</em>
<u>Explanation:</u>
<em>Octet is a game plan of an iota where the peripheral shell is filled by 8 electrons.</em> So as to achieve octet , the components either lose or gain electrons relying on their reactivity , number of valence electrons and different variables.
<em>For a metal :</em> A non - metal increases electrons to finish octet. <em>Eight electrons fill the valence level for every single respectable gas, with the exception of helium, which has two electrons in its full valence level.</em>
Answer:
Speaker
Explanation:
For example, Nancy Pelosi is the current Speaker
Answer:
i don't know
Explanation:
What Is the Overnight Rate? The overnight rate is the interest rate at which a depository institution (generally banks) lends or borrows funds with another depository institution in the overnight market. In many countries, the overnight rate is the interest rate the central bank sets to target monetary policy.