A ratio that considers a financial institution's assets and capital in order to measure its overall stability or financial strength. The standard requires that banks have combined capital that is at least as much as 8 per cent of their assets.

Previous Terms: 1031 Exchange, 1035 Exchange, AARP, Abeyance, Abstraction Principle, Accelerated Amortization, Acceptance Credit, Acceptance of a Bill of Exchange, Accommodation Bill, Accommodation Endorser