Karafarin Bank Meets CAR Standards

With capital adequacy ratio (CAR) of 8%, Karafarin Bank is among top 4 banks (out of the twenty Iranian banks) based on its financial statements of the 2016-17 fiscal year.
Quoting Karafarin Bank Public Relations, Fars Press reported this bank to be among the only four Iranian banks which meet CAR standards. According to this report, CAR is particularly significant as it reveals the credit risk of banks.
According to the CAR guideline, capital adequacy is calculated by dividing core capital into total weighted-risk coefficient assets based on percentage. The banks’ capital and assets are the main factors in measuring capital adequacy ratio.
Capital adequacy ratio should be at least 8% according to the Basel I Standard. Basel II Standard on the other hand, has risen this ratio to 12%.
The other 3 banks meeting this requirement are Sina, Parsian and Middle East Banks.