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Q. Explain Capital Adequacy?
Capital Adequacy: Capital adequacy rules are loose regulations which are imposed on private banks, in hope of ensuring that they have adequate internal resources (including money invested by bank's own shareholders) to be able to withstand fluctuations in profitability andlending.
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A control in economics means a steady profit rate that is enhancing. Thus, after one year you could have £1mill profit then the next year £3mill profit etc.
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