That is a regulatory minimum ie the business is in dire straits if it gets close to it. Tyro needs to operate at a CAR of circa 20% or above otherwise it will be severely capital constrained. Simplistically, since it reduced 10% last quarter, if it maintains that rate of decline then any excess capital will be used up within 6 months and severely restrict M&A and other capital expenditure. I've said in previous posts, Tyro needs to reduce the cash burn soon otherwise they will be needing a capital raise. This is one of the big risks that is impacting the share price.
TYR Price at posting:
$1.68 Sentiment: Buy Disclosure: Held
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