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.
email to a friend
print this definition
cite this definition
link to this page
free capital ratio is in the Accounting & Auditing and Banking, Commerce & Finance subjects.
This content can be found on the following page:
http://www.businessdictionary.com/definition/free-capital-ratio.html