free capital ratio
Definition
Used as a measure of a bank's ability to absorb bad debts from its free capital, without having to liquidate its fixed assets. Formula: Free capital ÷ bad debts.
Popular 'Accounting & Auditing' Terms
free capital ratio in the news
Loading...
This content can be found on the following page:
http://www.businessdictionary.com/definition/free-capital-ratio.html
