CAR means Capital adequacy ratio. A measure of a bank's capital. Also known as "Capital to Risk Weighted Assets Ratio (CRAR)." This ratio is used to protect depositors and promote the stability and efficiency of financial systems around the world.

Two types of capital are measured: tier one capital, which can absorb losses without a bank being required to cease trading, and tier two capital, which can absorb losses in the event of a winding-up and so provides a lesser degree of protection to depositors.


SLR stands for Statutory Liquidity Ratio. It is the amount of liquid assets, such as cash, precious metals or other approved securities, that a financial institution must maintain as reserves other than the Cash with the Central Bank.

The objectives of SLR are:

1. To restrict the expansion of bank credit.
2. To augment the investment of the banks in Government securities.
3. To ensure solvency of banks.