What do you mean by CD ratio?
The CD ratio refers to the credit-deposit ratio in banking parlance. It tells us how much of the money banks have raised in the form of deposits has been deployed as loans.
What is a good CD ratio?
What is CD ratio formula?
What is CD ratio as per RBI?
What is CCD ratio and CD ratio?
What is LDR in banking?
The loan-to-deposit ratio (LDR) is used to assess a bank’s liquidity by comparing a bank’s total loans to its total deposits for the same period. The LDR is expressed as a percentage. If the ratio is too high, it means that the bank may not have enough liquidity to cover any unforeseen fund requirements.
How do you calculate net loans?
- Get the short-term liabilities and add the long-term liabilities to them. You can find both in the balance sheet. That is the total debt.
- Subtract the cash and cash equivalents which you will find in the assets section of the balance sheet. The result is the net debt.
- Get the short-term liabilities and add the long-term liabilities to them. You can find both in the balance sheet. That is the total debt.
- Subtract the cash and cash equivalents which you will find in the assets section of the balance sheet. The result is the net debt.
How do you calculate risk weighted assets?
Banks calculate risk-weighted assets by multiplying the exposure amount by the relevant risk weight for the type of loan or asset. A bank repeats this calculation for all of its loans and assets, and adds them together to calculate total credit risk-weighted assets.
What is PCR bank?
A Provisioning Coverage Ratio or PCR is the percentage of funds that a bank sets aside for losses due to bad debts. A high PCR can be beneficial to banks to buffer themselves against losses if the NPAs start increasing faster.
What is SLF in banking?
Through its Standing Liquidity Facility (SLF), the Bank can provide, if needed, overnight credit (advances) to Lynx participants that find themselves short. These advances under the SLF are made on a secured basis against a wide range of high-quality collateral.
What is CASA in banking?
CASA stands for Current Account Saving Account. This is a unique feature which banks offer to their customers to make them keep their money in their banks. The account combines the benefits of savings account and checking accounts.
What do you mean by CD ratio?
The CD ratio refers to the credit-deposit ratio in banking parlance. It tells us how much of the money banks have raised in the form of deposits has been deployed as loans.
How can you find out someone’s net worth?
An individual’s net worth is simply the value that is left after subtracting liabilities from assets.
What does current asset mean?
Current assets are all the assets of a company that are expected to be sold or used as a result of standard business operations over the next year. Current assets include cash, cash equivalents, accounts receivable, stock inventory, marketable securities, pre-paid liabilities, and other liquid assets.
What is an off balance sheet item?
Off-balance-sheet items are contingent assets or liabilities such as unused commitments, letters of credit, and derivatives. These items may expose institutions to credit risk, liquidity risk, or counterparty risk, which is not reflected on the sector’s balance sheet reported on table L.
What is meant by Tier 1 capital?
Tier 1 capital refers to the core capital held in a bank’s reserves and is used to fund business activities for the bank’s clients. It includes common stock, as well as disclosed reserves and certain other assets.
What is credit cost?
Total credit cost = Provision for reserve for possible loan losses + Write-off of loans + Losses on sales of delinquent loans – Gains on reversal of reserve for possible loan losses – Recoveries of written-off claims. Total credit cost consists of credit cost and gains on recoveries of written-off claims.
Why is PCR used?
PCR is also valuable in a number of laboratory and clinical techniques, including DNA fingerprinting, detection of bacteria or viruses (particularly AIDS), and diagnosis of genetic disorders. What is PCR used for? Once amplified, the DNA produced by PCR can be used in many different laboratory procedures.
What is CRR at present?
The current CRR Rate is 4.50%
Does liquidity mean cash?
Liquidity refers to the ease with which an asset, or security, can be converted into ready cash without affecting its market price. Cash is the most liquid of assets, while tangible items are less liquid.
What are the 3 types of savings?
The 3 common savings account types are regular deposit, money market, and CDs. Each one works a little different regarding accessibility and amount of interest. Besides these accounts, there are other savings options too.