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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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Q: How do you measure asset quality of banks?
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