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The asset quality of bank cannot be measured alone by relying on Financial Statement Reports (Balance Sheet). You have to check the AUDITED Financial Statements and the Confidential Management Letter issued by the External Auditor for detailed analysis and material findings about the asset accounts.
In some countries, such assets quality measure and other material findings were discussed in the notes to the financial statements and in the qualified independent auditor's report .
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What is best measure of risk for an asset held in isolation and which is the best measure for an asset held in a diversified portfolio?
Standard deviation; correlation coefficient
What is the best measure of risk for an asset held in a well-diversified portfolio?
The measure of risk for an asset in a diversified portfolio is greatly dependent on the type of asset it is. And to narrow it down further, the name of the asset is vital to a complete answer. The best answer on the information provided is what percentage of the portfolio does the asset comprise of the portfolio.
Do banks make money off services?
Banks also generate revenue from such services as asset management, investment sales, and mortgage loan maintenance
What is camel in terms in bank management?
C- capital adequacy A- asset quality M- management quality E- earnings quality L- liquidity S- sensitive to market risk
What are non earning assets in banks?
Non-Earning Assets for banks are usually the loans for which the loan customers arent paying their monthly EMI's. Banks earn an income through the interest they get paid by the loan customers. So, if a loan customer defaults on his/her payment, the loan becomes a Non Earning or a Non Performing Asset. The term Non Performing Asset (NPA) is more commonly used than Non Earning.
