Bank Stability

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August 31, 2024 4 min read Definitions
Capital Adequacy Ratio: Solvency Ratio
Finance Banking Solvency Ratio Shareholders' Equity Financial Regulation Basel Accord Bank Stability
The proportion of a bank's total assets held as shareholders' equity and certain other defined classes of capital, indicating the bank's ability to meet depositor and creditor needs.
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August 31, 2024 4 min read Definitions
Cash Ratio: An Essential Liquidity Metric
Finance Banking Cash Ratio Liquidity Financial Metrics Bank Stability Risk Management
A detailed analysis of the Cash Ratio, a liquidity metric that gauges an entity's ability to cover its total liabilities with cash or cash equivalents.
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August 31, 2024 3 min read Definitions
Net Stable Funding Ratio (NSFR): Measure of Long-Term Funding Stability
Finance Banking Economics NSFR Basel III Bank Stability Liquidity Risk Financial Regulation
The Net Stable Funding Ratio (NSFR) is a key metric introduced by the Basel III regulatory framework to ensure that banks maintain a stable funding profile over a long-term horizon. This ratio assesses the liquidity risk and promotes resilience against financial stress by requiring banks to secure a proportionate amount of stable funding relative to their assets.
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