Definition of capital ratio in US English:

capital ratio


  • The extent to which a financial institution finances its operations by issuing shares and retaining profits, expressed as a percentage of its assets.

    ‘spurred by stronger regulatory requirements, banks have steadily increased their capital ratios since the financial crisis’
    • ‘The asset value and working capital ratio suggest the tenant is creditworthy as defined earlier.’
    • ‘Most banks in Hong Kong have an average capital ratio of 15 per cent, far exceeding the international minimum of 8 per cent.’
    • ‘The capital ratio for the aluminium, cement and real estate industries will rise to 35 per cent from 25 per cent.’
    • ‘The Fed needs $48 billion in capital just to get back to the capital ratios it had last year.’
    • ‘Issuing the bonds reduced the bank's tier-one capital ratio to 5.9%, roughly 1% below its five-year average.’