Asset Quality


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Asset Quality

A measure of the likelihood of default of a loan or lease, combined with a measure of its marketability. That is, asset quality is a measure of the price at which a bank or other financial institution can sell a loan or lease to a third party, as determined by the borrower or lessee, especially by a bond issuer. Credit ratings agencies determine credit quality in order to provide bond ratings; they may change these from time to time. FICO scores are measures of the credit quality of individuals. See also: Investment-grade, Junk.
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Aug 30, 2019 (LBO) - Moody's Investors Service says in a new report that its negative outlook for Sri Lanka's banking system is driven by weak operating conditions and deteriorating asset quality, as a slow recovery in the tourism and related sectors are resulting in subdued economic growth.
Global Banking News-August 19, 2019--Indian central bank not going ahead with NBFCs asset quality reviews
M2 EQUITYBITES-August 19, 2019--Indian central bank not going ahead with NBFCs asset quality reviews
BANKING AND CREDIT NEWS-August 19, 2019--Indian central bank not going ahead with NBFCs asset quality reviews
London: Turkish banks' 3Q18 results confirm that asset quality is gradually deteriorating as a result of the economic slowdown, lira depreciation and interest rate rises, Fitch Ratings says.
Asset quality is the primary reason for several Kazakh banks' failures and liquidity issues, reads the Kazakh Banks Datawatch for 3Q18, published by Fitch Ratings.
The stable assessment was made on the back of the industry's good asset quality, strong loss buffers and ample liquidity that allows for the accommodation of rapid loan growth in a growing economy.
Ahlibank has won the 'Best Bank in Asset Quality' award in Qatar at the New Age Banking Summit 2018 awards ceremony, organised by UMS Conferences with the support of Qatar Central Bank and Qatar Financial Centre Regulatory Authority.
Summary: Qatari banks expected to face higher asset quality pressure
The Rating action is driven by the improvement in Gulf Bank's asset quality and profitability over the next 12-18 months and potentially lower through-the-cycle portfolio losses resulting from reduced loan concentration to single borrower and more volatile sectors, along with improvements in the Bank's underwriting standards over years, said Moody's in their recently published press release.
Microfinance portfolios of small finance banks and non-bank microfinance institutions (together referred to as MFIs) are showing a distinct improvement and stability in asset quality since June 2017, shrugging off the impact of demonetisation, which had cranked up delinquencies, affected borrower behaviour and worsened asset quality.
On the other hand, HDFC was up 0.4 percent post stable earnings and asset quality while Tata Steel was down 1.2 percent ahead of earnings later today.