Credit Risk Measurement and Models: Credit Capital Calculations
Interactive

Credit Risk Measurement and Models: Credit Capital Calculations

Intuition Publishing
Updated Sep 25, 2020

The basic credit capital calculation is known as the capital adequacy ratio (CAR). This represents the ratio of qualifying capital to risk-weighted assets (RWAs). Under Basel III, requirements on capital adequacy have been significantly tightened. Here we look at the key elements of the capital adequacy regime and the minimum regulatory capital requirements under Basel III.