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Banking Policy Department Our Ref: B1/15C, B9/75C, B9/143C S4/3C, S4/16C 30 August 2024 The Chief Executive All Authorized Institutions Dear Sir/Madam, Revised Banking Returns Capital Adequacy Ratio
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The capital adequacy ratio form is a regulatory document used by financial institutions to report their capital levels relative to their risk-weighted assets, ensuring they maintain sufficient capital to absorb potential losses.
Banks and other financial institutions, including credit unions and investment firms, are required to file the capital adequacy ratio form as part of their regulatory obligations.
To fill out the capital adequacy ratio form, institutions must gather data on their total capital, risk-weighted assets, and any other required financial metrics, then accurately report these figures in the prescribed format.
The purpose of the capital adequacy ratio form is to assess the financial stability of institutions, ensuring they have enough capital to cover risks and protect depositors and the financial system.
Information reported on the capital adequacy ratio form includes total capital, tier 1 and tier 2 capital, risk-weighted assets, and calculated capital adequacy ratios.
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