Texas ratio
id:
texas-ratio-260-15782659
title:
Texas ratio
text:
The Texas ratio is a measure of a bank's credit troubles. The higher the Texas ratio, the more severe the credit troubles. Developed by Gerard Cassidy and others at RBC Capital Markets, it is calculated by dividing the value of the lender's non-performing assets by the sum of its tangible common equity capital and loan loss reserves. In analyzing Texas banks during the early 1980s recession, Cassidy noted that banks tended to fail when this ratio reached 1:1, or 100%. He noted a similar pattern
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wiki
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encyclopedia
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original url:
https://en.wikipedia.org/wiki/Texas_ratio
date created:
date modified:
2021-02-05T04:17:27Z
main entity:
{"identifier":"Q17082760","url":"https://www.wikidata.org/entity/Q17082760"}
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13
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