Bank Financial Ratios

1. Bank Liquidity Ratio

This ratio aims to measure how liquid a bank is in serving its customers. In this ratio consists of several types, viz

a. Quick ratio

b. Investing policy ratio

c. Banking ratio

d. Assets to loan ratio

e. Investment portfolio ratio

f. Cash ratio

g. Loan to deposit ratio

h. Investment risk ratio

i. Liquidity risk ratio

j. Credit risk ratio

k. Deposit risk ratio

2. Bank Solvency Ratio

This ratio aims to measure the effectiveness of banks in achieving their goals. In this ratio consists of several types, viz

a. Primary ratio

b. Risk assets ratio

c. Secondary risk ratio

d. Capital ratio

e. Capital risk

f. Capital adequacy ratio

g. Gross yield on total assets

h. Gross profit margin on loan total assets

i. Net income on total assets

3. Bank Rentability Ratio

Bank profitability ratios are ratios used to measure the level of business efficiency and profitability achieved by banks in a certain period. This ratio consists of

a. Gross profit margin

b. Net profit margin

c. Return on equity capital

d. Return on total assets

e. Rate return on loan

f. Interest margin on earning assets

g. Interest margin on loan

h. Laverage multiplier

i. Assets utikization

j. Interest expense ratio

k. Cost of fund

l. Cost of money

m. Cost of loanable fund

n. Cost of operable fund

o. Cost of efficiency

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