The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

FREE CAPITAL RATIO Definition & Legal Meaning

Definition & Citations:

Measures bank’s ability to use free capital without having to liquidate its fixed assets to absorb bad debts. Formula: Free capital divided by bad debts.


This article contains general legal information but does not constitute professional legal advice for your particular situation. The Law Dictionary is not a law firm, and this page does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.