The Bank’s capital adequacy ratio is 42.93% (31 December 2003: 44.51%). This rate is considerably above the minimum rate of 8% that is specified by the pertinent regulation.
For the calculation of the capital adequacy ratio, the Bank classifies the risk weighted assets and non-cash loans according to the risk weights defined by the regulations and calculates “Total risk weighed assets” which is the sum of “market risk on securities” and the “Bank’s currency risk”. The following tables show the classifications of risk weighted assets and the calculation of shareholders’ equity for the capital adequacy ratio calculation.
