answersLogoWhite

0

Asset quality ratios determines the quality of loans of a financial institution. If the ratio is high the more at risk the loans are. The lower the ratio, the less likely the loan would be at risk.

User Avatar

Wiki User

11y ago

What else can I help you with?

Related Questions

What are Asset Utilization Ratios?

How do I compute Asset Utilization ratio


What Asset utilization ratios?

How do I compute Asset Utilization ratio


Asset management ratios?

Generally Asset Management ratios is an attempt to compare a company's revenue to their available assets. In other words a company's ability to manage their assets to better sales is measured.


Return on Investment is composed of what two ratios?

Profit margin and asset turnover


What does Asset Management ratios indicate?

Asset management ratios indicate a) how well a firm is using its assets to support sales b) how efficiently a firm is allocating its liabilities c) the return on assets d) the profitability of the firm


Does asset utilization ratios describe how capital is being utilized to buy assets?

true


types of profitability ratios?

there are many profitability ratios which are calculated. some of them are:profit marginoperating margintotal asset turnoverreturn on assets (ROA)return on equity (ROE)


What is the prudential norms of the banks?

Prudential norms relate to income recognition,asset classification,provisioning of NPAs and capital adequacy ratios( capital to risk weighted asset ratio, CRAR)


Synonym for asset?

Exact Synonym for " asset" is " Plus" but there can be many others like quality, property, etc.


What word for good quality starting with A and five letters?

asset


What ratios are important in banking sector?

Credit to deposit ratioCapital adequacy ratioNon-performing asset ratioProvision coverage ratioReturn on assets ratio


What other 3 feilds of study use ratios?

Ratios are extensively used in finance, where they help assess a company's performance and financial health through metrics like debt-to-equity and price-to-earnings ratios. In healthcare, ratios such as nurse-to-patient and mortality rates are critical for evaluating care quality and resource allocation. Additionally, in engineering, ratios are employed in various calculations, such as aspect ratios in design and efficiency ratios in performance assessments.