Tuesday, October 23, 2018

Banks’ capital adequacy continues to rise beyond Basel. Banks need now to focus more on profitability


The Capital Adequacy Ratio (CAR) of banks rose to 16.82 percent at the end of 2017 from 16.49 percent a year earlier, according to the 'Lebanon Banking Sector', a report by Bank Audi released in September.

The CAR continues to improve beyond the Basel requirements "reflecting an adequate coverage of the aggregation of credit, market and operational risks," the report said.

In compliance with the Basel requirements, banks are required by the Central Bank to reach a CAR of 14.5 perce...

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