A well-capitalized institution has a ratio of capital to risk-weighted assets of at least 10 percent and faces no significant regulatory restrictions on its expansion.

Question

Quizplus · Accepted Answer

A well-capitalized institution is defined as having a ratio of capital to risk-weighted assets of at least 10 percent, according to regulatory standards in many countries. Additionally, such an institution typically faces no significant regulatory restrictions on its expansion, meaning it is not limited by capital requirements or other regulations that would impede growth.

A Well-Capitalized Institution Has a Ratio of Capital to Risk-Weighted