Question

Outline the ways in which banks can increase their capital strength

Answer 1

The ways in which the banks can increase their capital strength-

1. Building capital through the bank's ability of using retained earnings.

2. Higher capital ratios and stronger profitability of the banks.

3. Promoting the stability and efficiency of the banks.

4. Meeting financial obligations.

5. High capital adequacy ratio

6. Managing their asset expansion

7. Increasing minimum capital requirements.

8. Enhancing the risk coverage of the capital framework

9. Expanding the capital base

10. Reducing the length of its balance sheet