High capital adequacy ratio is good because it indicates that the bank is in a better position to deal with unexpected losses due to availability of adequate capital. A bank is at a higher risk of failure when the capital adequacy ratio is lower, which indicates that regulatory authorities may have to intervene and infuse capital. You can read about the Capital Adequacy Ratio (CAR) in the given link.
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- Basel III Norms – Regulations by Basel Committee on Banking Supervision