To assess the Asset Quality of Banks/Financial Institutions, the following ratios need to be analyzed:
Loans Loss
Non-performing loans to total loans
Loan Recoveries ratio
Loan Loss Reserves
EARNINGS COVERAGE
Capital Adequacy
Capital Formation Ratio
Capital to Assets Growth
Gross Capital to Average Assets plus Reserves
Ratio
Purpose
Formula
Earnings Coverage Ratio
Measures the level of earnings and the charge to income against [...]
FCCA,CA(MIA)with more than 26 years of post-qualifying working experiences. Previous working stints with one of the big accounting four, Regional GFC & Group Treasurer in a group of Malaysian and Group CFO in Singapore public listed concern.
Also author to another very popular free educational accounting cum finance blog: http://basiccollegeaccounting.com under the branding of College Accounting Coach.
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