#asset quality
Articles tagged with "asset quality"
Community Bank Trend Analysis: What the Charts Show
When the Fed raised rates 525 basis points in about 16 months (March 2022 to July 2023), cumulative deposit beta for the median bank …
Nonperforming Loan Ratio: Bank Data Analysis in Python
Most U.S. banks carry NPL ratios well under 2%; the right tail flags asset-quality stress.
Allowance Coverage Ratio: How to Judge Reserve Adequacy
A bank can hold $50 million in reserves and still be dangerously thin. The dollar figure is nearly meaningless without context: specifically, what those …
Bank Failures and the FDIC Problem Bank List
Silicon Valley Bank had a tangible common equity ratio that had been declining for six quarters before March 2023. The concentration in long-duration securities …
Provision for Credit Losses: Why It Moves Bank Earnings
In Q1 2020, U.S. banks booked a combined $52.7 billion in provision for credit losses, nearly four times the prior-year quarter (FDIC Quarterly Banking …
Nonperforming Loans and the NPL Ratio Explained
At the peak of the 2008 credit cycle, the industry-wide noncurrent loan rate hit 5.4%, nearly one in twenty loan dollars had stopped performing. …
What Is the Net Charge-Off Rate? A Bank Credit Guide
In the fourth quarter of 2009, the net charge-off rate for U.S. commercial banks reached 3.3% annualized, a level that would be catastrophic for …
Reading Bank Loss Reserves: Provision, Allowance and Adequacy
In Q1 2020, JPMorgan Chase posted an $8.3 billion provision for credit losses, of which $6.8 billion was a reserve build, up from roughly …
The Texas Ratio as a Failure Warning: Origins and Limits
The Texas Ratio is one of the simplest and most reliable early-warning signals for bank failure. Learn what it measures, how to calculate it …