Liquidity ratios & capital ratios

• WHAT ARE LIQUIDITY RATIOS?:

  • Liquidity ratios for banks are used to assess a bank's ability to meet its short-term financial obligations
• What are liquidity ratios?:

  • Liquidity ratios for banks are used to assess a bank's ability to meet its short-term financial obligations
• What do liquidity ratios cover?:

  • Withdrawals
  • Unexpected funding needs
• What are capital ratios?:

  • A measure of a bank's long-term solvency and ability to absorb losses.
• What are capital ratios?

  A measure of a bank's long-term solvency and ability to absorb losses.