BANKING capital is growing. Bankers must also think hard about how to utilize their increasingly large capital so that their return on investment provides optimal returns for shareholders. Infobank Research Bureau noted that, seeing from the perspective of the industry, the capital adequacy ratio (CAR) of commercial banks continued to rise, from 22.89% in 2020, to 25.66% in 2022, to 26.69% in 2024, and currently remains above 25%. Only three banks have CARs below 18%. Even this is still safe, as high-risk indicators exist for banks with CARs below 12%.
Meanwhile, CARs above 25% indicate ineffective capital utilization, as experienced by 47 commercial banks.
