Capital Adequacy Ratio for Banking

Instructor: EDUCBA

Included with

Learn more

Ask Coursera

5 modules

Gain insight into a topic and learn the fundamentals.

9 hours to complete

Flexible schedule

Learn at your own pace

5 modules

Gain insight into a topic and learn the fundamentals.

9 hours to complete

Flexible schedule

Learn at your own pace

What you'll learn

Calculate Capital Adequacy Ratio (CAR) using Basel I capital and risk-weighted asset frameworks.
Analyze Tier 1, Tier 2 capital structures and their impact on banking resilience.
Evaluate regulatory capital requirements and apply risk management principles in banking.

Details to know

Shareable certificate

Add to your LinkedIn profile

See how employees at top companies are mastering in-demand skills

Learn more about Coursera for Business

logos of Petrobras, TATA, Danone, Capgemini, P&G and L'Oreal

There are 5 modules in this course

Master Basel I Capital Adequacy and CAR calculations with real-world banking case studies.

Learn how global banks manage risk, capital, and regulatory compliance. This course provides a practical, step-by-step approach to understanding the Basel I framework and its role in banking stability. You will explore core concepts such as Tier 1 and Tier 2 capital, risk-weighted assets, and capital adequacy ratio (CAR), while applying them to real-world examples from leading banks like DBS, JPMorgan, and SWED Bank. Through structured lessons and case-based learning, you will develop the ability to calculate CAR, analyze capital structures, and evaluate financial resilience. The course also introduces key insights into Basel III evolution, helping you connect foundational knowledge with modern regulatory practices. By the end of this course, learners will confidently interpret capital adequacy metrics, apply risk management principles, and make informed financial decisions in banking and finance roles.

Understand Basel I principles, capital structure, credit exposure, and risk-weighted assets to build a strong foundation in capital adequacy.

What's included

7 videos1 assignment

7 videosTotal 63 minutes

Introduction to Bank Capital Planning under Basel I11 minutes
Introduction to Bank Capital Planning under Basel I Continue10 minutes
Credit Exposures8 minutes
Credit Exposures Terms with Examples9 minutes
Total Capital Including Tier 8 minutes
Calculation of Risk Weighted Exposures8 minutes
CAR - Final Calculation8 minutes

1 assignmentTotal 30 minutes

Foundations of Basel I Capital Planning30 minutes

Apply CAR calculations using real-world examples from DBS and JPMorgan, including provisions and capital adjustments.

What's included

8 videos1 assignment

8 videosTotal 62 minutes

DBS Bank Car Calculation12 minutes
DBS Bank Car Calculation Continue7 minutes
More on DBS Bank Car Calculation6 minutes
Provisions Eligible as Tier 2 Capital7 minutes
Wall Street - CAR10 minutes
Wall Street - JPM CAR6 minutes
Wall Street - JPM CAR Continue7 minutes
More on Wall Street - JPM CAR7 minutes

1 assignmentTotal 30 minutes

Practical CAR Calculations – DBS & Wall Street30 minutes

Explore risk management frameworks, capital requirements, and equity composition for effective banking analysis.

What's included

8 videos1 assignment

8 videosTotal 65 minutes

Risk Management Objective and Guidelines11 minutes
CSR Planning of Scandinavia Enscheda Banked8 minutes
Capital Requirement8 minutes
Capital Ratio7 minutes
CAR Planning RBS Bank8 minutes
Composting of Capital7 minutes
Composting of Shareholders Equity8 minutes
Equity Capital Calculation8 minutes

1 assignmentTotal 30 minutes

Risk Management & Capital Requirements30 minutes

Analyze capital ratios, financial stability drivers, and strategic planning tools for maintaining regulatory compliance.

What's included

8 videos1 assignment

Examine advanced case studies, capital surplus, and transition insights from Basel I to Basel III frameworks.

What's included

6 videos1 assignment

Instructor

EDUCBA

1,591 Courses326,930 learners

Offered by

EDUCBA

Explore more from Finance

Status: Free Trial
EDUCBA
Capital Adequacy, Stress Scenarios, and Financial Resilience
Course
Status: Preview
EDUCBA
Basel III Norms: Apply Standards in US & UK Banking
Course
Status: Free Trial
EDUCBA
Analyze Capital, Basel, Stress Testing, and Resilience
Course
Status: Free Trial
EDUCBA
Credit Risk Modeling & its Application in Banks
Course

Why people choose Coursera for their career

Felipe M.

Learner since 2018

"To be able to take courses at my own pace and rhythm has been an amazing experience. I can learn whenever it fits my schedule and mood."

Jennifer J.

Learner since 2020

"I directly applied the concepts and skills I learned from my courses to an exciting new project at work."

Larry W.

Learner since 2021

"When I need courses on topics that my university doesn't offer, Coursera is one of the best places to go."

Chaitanya A.

"Learning isn't just about being better at your job: it's so much more than that. Coursera allows me to learn without limits."

Unlock access to 10,000+ courses with a subscription
Advance your career with an online degree
Earn a degree from world-class universities - 100% online
Join over 4,700 global companies that choose Coursera for Business

Frequently asked questions

To access the course materials, assignments and to earn a Certificate, you will need to purchase the Certificate experience when you enroll in a course. You can try a Free Trial instead, or apply for Financial Aid. The course may offer 'Full Course, No Certificate' instead. This option lets you see all course materials, submit required assessments, and get a final grade. This also means that you will not be able to purchase a Certificate experience.

When you purchase a Certificate you get access to all course materials, including graded assignments. Upon completing the course, your electronic Certificate will be added to your Accomplishments page - from there, you can print your Certificate or add it to your LinkedIn profile.

Yes. In select learning programs, you can apply for financial aid or a scholarship if you can’t afford the enrollment fee. If fin aid or scholarship is available for your learning program selection, you’ll find a link to apply on the description page.