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What else can I help you with?
Banks current ratio should be how much?
The ideal current ratio for banks 1.33 : 1
What are the most five important ratios for banks?
current raiot, working capital ratio, liquidity ratio, capital adequacy ratio, net asset ratio
What mechanism is used by commercial banks for providing credit to government?
statutory liquidity ratio
What is statutory liqudity ratio?
Statutory liqudity ratio means all the banks maintained it in the form of cash in hand (exclusive of the minimum cash reserve ratio),Current account balances with SBI and other public sector commercial banks, unencumbered approved securities and gold. RBI prescribes SLR from 25% to 40%.
What is the purpose of cash reserve ratio?
CRR stands for Cash Reserve Ratio. This is the amount of money banks have to deposit with the central bank and this amount depends on the amount of total deposits held by the bank. It is used the Central bank to control the amount of cashflow in the market and the amount of money the banks have for lending to the public
Banks current ratio should be how much?
The ideal current ratio for banks 1.33 : 1
How do you calculate credit loss ratio?
how do we calculate credit loss ratio in banks financials
What are the most five important ratios for banks?
current raiot, working capital ratio, liquidity ratio, capital adequacy ratio, net asset ratio
What is the purpose of raising and lowering required reserve ratio?
The required reserve ratio, set by central banks, determines the minimum amount of reserves that commercial banks must hold against deposits. Raising the ratio decreases the amount of funds banks can lend, which can help control inflation and stabilize the economy. Conversely, lowering the ratio allows banks to lend more, stimulating economic growth during downturns. Adjusting the ratio is a tool for monetary policy to influence liquidity and manage economic conditions.
Who has the power to determine what the margin requirement will be for the member banks?
Usually the Central Banks of each country decide such margin requirements. Ratios like Cash Reserve Ratio, Liquidity Ratio etc are set by the Central Banks like Reserve Bank of India or Federal Reserve of USA. All member banks are expected and supposed to follow these guidelines set by the central banks.
The lowest rate of interest which banks can offer is called the?
reserve ratio ;p
What describes how lowering the required reserve ratio reduces the money supply?
When the required reserve ratio is lowered, banks can loan out more money.
What mechanism is used by commercial banks for providing credit to government?
statutory liquidity ratio
What can the Fed accomplish by raising or lowering the required reserve ratio?
If they lower the ratio, banks do not have to hold as much cash (which gains no interest), the banks will attempt to loan this money out and make money, this can stimulate investment. Increase or decrease in the money supply (APEX)
Credit deposit ratio?
A commonly used statistic for assessing a bank's liquidity by dividing the banks total loans by its total deposits. This number, also known as the LTD ratio, is expressed as a percentage. If the ratio is too high, it means that banks might not have enough liquidity to cover any unforseen fund requirements; if the ratio is too low, banks may not be earning as much as they could be.
What is the ratio of interest on loan from banks?
It depends, among other factors, onthe country and expectations about inflation,the degree of competition between banks,the borrowers' creditworthiness.
What is statutory liqudity ratio?
Statutory liqudity ratio means all the banks maintained it in the form of cash in hand (exclusive of the minimum cash reserve ratio),Current account balances with SBI and other public sector commercial banks, unencumbered approved securities and gold. RBI prescribes SLR from 25% to 40%.
