Capital adequacy - A measure of the financial strength of a bank or securities firm, usually expressed as a ratio of its capital to its assets. For banks, there is now a worldwide capital adequacy standard, drawn up by the Basle committee, of the Bank for International Settlements. This BIS ration requires banks to have capital equal to 8 per cent of their assets.
Capital adequacy : a measure of the financial strength of a bank or securities firm, usually expressed as a ratio of its capital to its assets. for banks, there is now a worldwide capital adequacy standard, drawn up by the basle committee, of the bank for international settlements. this bis ration requires banks to have capital equal to 8 per cent of their assets.