### Question
What is the definition of capital ratio?


### Answer
The definition of **capital ratio** is as follows in *20 U.S.C. § 1087*:

> the ratio of total stockholders’ equity, as shown on the Association's most recent quarterly consolidated balance sheet prepared in the ordinary course of its business, to the sum of—


(i) the total assets of the Association, as shown on the balance sheet prepared in the ordinary course of its business

#### Citation:
  - *20 U.S.C. § 1087*
  - Heading: **CHAPTER 28-HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE > SUBCHAPTER IV-STUDENT ASSISTANCE > Part B-Federal Family Education Loan Program**

