Question: Minimum Capital Adequacy Ratio CAR (minimum Share Holders Equity Requirement) is applicable for banks in every country. Minimum Capital Adequacy Ratio is calculated as: Share

Minimum Capital Adequacy Ratio CAR (minimum Share Holders Equity Requirement) is applicable for banks in every country. Minimum Capital Adequacy Ratio is calculated as:

Share Holders Equity

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Risk Weighted Assets + Market Risks + Operational Risks

This ratio should not be less than 12% in Turkey. f this ratio is below 12% the supervisory body BDDK warns the bank and asks the bank to increase its ratio to 12%. Assume that you are the CEO of a commercial bank. Your banks CAR is only 7%. BDDK asked you to prepare a list of actions your bank will take to increase its CAR. Write 8 different actions your bank will take to increase its CAR ratio to 12%.

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