To assess the Asset Quality of Banks/Financial Institutions, the following ratios need to be analyzed:

Loans Loss
NON-PERFORMING LOANS TO TOTAL LOANS
Loans Recoveries Rate
Loans Loss Reserve
Earnings coverage
Capital Adequacy

Capital Formation Ratio
Capital to Assets Growth
Gross Capital to Average Assets plus Reserves

NON-PERFORMING LOANS TO TOTAL LOANS

Ratio

Measure
Formula

Non Performing Loans To Total Loans
· […]

To assess the Asset Quality of Banks/Financial Institutions, the following ratios need to be analyzed:

LOANS LOSS
Non-performing loans to Total Loans
Loans Recoveries Ratio
Loans Loss Reserves
Earnings coverage
Capital Adequacy

Capital Formation Ratio

Capital to Assets Growth

Gross Capital to Average Assets plus Reserves

LOANS LOSS:

Poor asset quality is reflected in the loans written off or loans loss ratio, […]

One of the fundamental reasons for a bank/financial institution to collapse is its poor asset quality namely giving out bad or poor credit standard loans Not even foreign exchange exposure, deposits, maturity mismatches and open positions can hit it so hard to cause a bank/financial institution to collapse ! When a bank/financial institution get […]

In Part 2 of this article, we shall still continue with reviewing Keck Seng’s notes to the financial statement – investment on equities which is also priced at a book value lower than the current market price! According to notes accompanying its fourth quarter results ended Dec 31, 2006, the book value of these investments […]

Initially whilst scrutinizing the Notes to the Financial Statements, many would be confused and /amazed by tons & tons of information about accounting principles and the detailed composition of the Balance sheet items.
Then suddenly you saw in the Fixed Asset Section the wording:
“that the company ‘s leasehold properties and other properties have not be […]