What is the capital adequacy ratio? Why does the government set minimum capital adequacy ratios for banks?

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What is the capital adequacy ratio? Why does the government set minimum capital adequacy ratios for banks? If the central bank wanted to restrict lending in credit markets, how would it adjust the minimum capital adequacy ratio of banks

Posted Date: Jun 13, 2024 12:09 AM

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What is the capital adequacy ratio? Why does the government set minimum capital adequacy ratios for banks?

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