Search results
Results from the WOW.Com Content Network
The Texas ratio is a metric used to assess the extent of a bank's credit problems. Developed by Gerard Cassidy and others at RBC Capital Markets , it is calculated by dividing the value of the lender's non-performing assets ( NPL + Real Estate Owned) by the sum of its tangible common equity capital and loan loss reserves.
The committee targeted raising the capital adequacy ratio to 9% by 2000 and 10% by 2002 and have penal provisions for banks that fail to meet these requirements. [4] [6] For asset classification, the Committee recommended a mandatory 1% in case of standard assets and for the accrual of interest income to be done every 90 days instead of 180 ...
A non-performing loan (NPL) is a bank loan that is subject to late repayment or is unlikely to be repaid by the borrower in full. Non-performing loans represent a major challenge for the banking sector, as they reduce profitability. [ 1 ]
The total-debt-to-total-assets ratio is one of many financial metrics used to measure a company’s performance. In this case, the ratio shows how much of a company’s operations are funded by debt.
Non-performing asset, banking term for loans in jeopardy of default, ones that have not paid principal or interest for 90+ days; Northcoast Preparatory and Performing Arts Academy, a high school in Arcata, California, United States; Northland Preparatory Academy, a middle and high school in Flagstaff, Arizona, United States
A bank may accumulate a large portfolio of debts or other financial instruments which unexpectedly become at risk of partial or full default. A large volume of non-performing assets usually make it difficult for the bank to raise capital, for example through sales of bonds. In these circumstances, the bank may wish to segregate its good assets ...
Government bonds and T-bills are considered as good quality loans whereas junk bonds, corporate credits to low credit score firms etc. are bad quality loans. A bad quality loan has a higher probability of becoming a non-performing loan with no return. Bank management components are: Asset management; Liquidity management; Liability management
The federal government held $1.4 trillion in assets at the end of 2009. This is more than double the assets held by the federal government in 2007 ($686 billion), mainly due to the acquisition of corporate equities, credit market debt, and cash. The federal government held $223 billion in corporate equity at the beginning of 2009; this had ...