what is desired objective of the asset quality ratio, and what does it measure? the higher...
what is desired objective of the asset quality ratio, and what does it measure?
the higher the better, demonstrating improvement, measures loan losses to loan
the lover the better, measure loan losses to asset
none of the items is correct
the higher the better, ,measures loan losses to asset s
the lower the better, measures allowance for loan losses
Homework Answers
Asset quality ratio measures the loan impairment charge for the year as a percentage of loans and advances to customers.
It measures the operating efficiency, risk management practice and credit appraisal of a bank.
Hence, the answer is option c.
In case of any query, kindly comment on the solution.
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