Texas Ratio

From Open Risk Manual
Revision as of 12:46, 25 September 2020 by Wiki admin (talk | contribs) (Created page with "== Definition == The '''Texas Ratio''' is generally calculated by dividing the gross value of a bank’s non-performing assets by the sum of its tan...")
(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)

Definition

The Texas Ratio is generally calculated by dividing the gross value of a bank’s non-performing assets by the sum of its tangible common equity capital and loan loss reserves.[1]

References

  1. ECB Guidance to banks on non-performing loans, March 2017