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Eduncle posted an MCQ
October 13, 2019 • 20:03 pm 0 points
  • UGC NET
  • Commerce

Statement (I) : Capital adequacy norms help banks in strengthening their capital base

Statement (I) : Capital adequacy norms help banks in strengthening their capital base. Statement (II) : Capital adequacy norms help banks in sanctioning more loans.

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    Eduncle Best Answer

    It is a measure of a bank’s capital. It is expressed as a percentage of a bank’s risk weighted credit exposures.
    This ratio is used to protect depositors and promote stability and efficiency of financial systems around the world.

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