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
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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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