From Longman Business Dictionarycapital ratioˌcapital ˈratio (also capital adequacy ratio) British EnglishACCOUNTINGBANKING a bank’s capital as a percentage of what it lends, an important measure in calculating if it is likely to failSYNsolvency ratio AmEAmong the commercial banks, capital adequacy ratios are very poor and new capital may be necessary. → ratio
