What does the so called capital to risk weighted assets ratio (CRAR) denote with respect to the banks?
- Balance sheet strength of the banks
- Immunity of banks against capital loss
- Day today Liquidity condition of the banks
Select the correct option from the codes given below:
CRAR is a standard metric to measure balance sheet strength of banks. Higher the CRAR the lesser is the chance for bank to suffer capital loss. Third statement is incorrect.
This question is a part of GKToday's Integrated IAS General Studies Module