METHODS OF ASSESSING BANK CAPITAL AND ENSURING ITS ADEQUACY

Authors

  • Matmurodova Nargiza Leading Manager of Hamkorbank JSCB Khorezm MBXO

Keywords:

bank capital, capital adequacy, capital adequacy ratio, risk-weighted assets, leverage ratio, stress testing, internal capital, adequacy assessment process, risk-adjusted return on capital.

Abstract

This article examines the key methods used to assess bank capital and ensure its adequacy, which is crucial for maintaining financial stability and protecting the banking system from unexpected losses. It discusses capital adequacy ratios, leverage ratios, stress testing, internal capital adequacy assessment processes (ICAAP), risk-adjusted return on capital (RAROC), and market-based measures. The article also highlights the role of regulatory frameworks, particularly the Basel Accords, in setting minimum capital requirements and guiding banks to hold sufficient capital buffers. These mechanisms collectively help banks absorb shocks, maintain solvency, and support sustainable economic growth.

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References

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Published

2025-07-18

How to Cite

Matmurodova Nargiza. (2025). METHODS OF ASSESSING BANK CAPITAL AND ENSURING ITS ADEQUACY. Journal of Applied Science and Social Science, 15(07), 187–192. Retrieved from https://www.internationaljournal.co.in/index.php/jasass/article/view/1483

Issue

Vol. 15 No. 07 (2025): Volume 15 Issue 07

Section

Articles

License

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