Karafarin Bank is the second in terms of CAR among all banks in Iran.

The latest study of several banking reports submitted to stock exchange’s system indicates that among the Iranian banks listed on Tehran Stock Exchange, Karafarin Bank takes second place in terms of Capital Adequacy Ratio )CAR(.

The Middle East Bank and Pasargad Bank stand first and third, respectively. The research proved 12.9 percent of Capital Adequacy Ratio for Middle East Bank, Karafarin Bank with 11 Percent, as well as Pasargad Bank with 10 percent.
These years; the Central Bank of Islamic Republic of Iran has considered 8 percent as the minimum Capital Adequacy Ratio for banks in Iran’s banking system.
It should be noted that the optimum Capital Adequacy Ratio under Basel III is about 8 percent.
Since 2020, Considering 2.5% Conservation Buffer, the proper level of CAR is set to 10.5%. The average CAR in the United States is about 15.2 percent, while Argentina having the highest CAR ratio at 26.7 percent.
According to the submitted reports, Sina Bank has Complied with minimum standard ratio (8%).
Capital Adequacy Ratio (CAR( is one of the most important criteria to assess the financial health of banks and liquidity risk as well as credit risk. This ratio is calculated by dividing bank’s capital (two tiers) by its risk-weighted assets. If a bank has a good CAR, has enough capital to respond to credit and operational risks, Therefore, it can guarantee that the bank has enough capital to protect depositors’ money.

Publish Date: Jun 19, 2022