Question

In banking, what does the Provisioning Coverage Ratio (PC

  • R primarily measure?
A The ratio of net profit to total gross non-performing assets
B The ratio of total provisions held against gross non-performing assets to show the extent of funds set aside for loan losses
C The proportion of high-quality liquid assets available to meet short-term liabilities
D The percentage of equity capital maintained against risk-weighted assets
E The proportion of standard assets that are likely to default within the next financial year
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