Capital adequacy ratio
Regulation & taxAlso called: CRAR, Capital to risk-weighted assets ratio
Tier 1 plus Tier 2 capital divided by risk-weighted assets — the regulatory ceiling on how much a lender may carry against its own capital.
In plain terms
The plate on the lorry door. All the borrowers and all the funding in the world do not raise it, so a book growing faster than capital has a dated appointment with a share issue.