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COMCEC Financial Outlook 2018

32

Financial Efficiency

Bank lending-

deposit spread

Difference between lending rate and deposit rate. Lending rate is the rate

charged by banks on loans to the private sector and deposit interest rate is the

rate offered by commercial banks on three-month deposits.

Bank return on

assets (%, after

tax)

Commercial banks’ after-tax net income to yearly averaged equity.

Bank return on

equity (%, after

tax)

Commercial banks’ after-tax net income to yearly averaged equity.

Stock market

turnover ratio

(%)

Total value of shares traded during the period divided by the average market

capitalization for the period.

Financial Stability

Bank non-

performing loans

to gross loans (%)

Ratio of defaulting loans (payments of interest and principal past due by 90

days or more) to total gross loans (total value of loan portfolio). The loan

amount recorded as non-performing includes the gross value of the loan as

recorded on the balance sheet, not just the amount that is overdue.

Bank capital to

total assets (%)

Ratio of bank capital and reserves to total assets. Capital and reserves include

funds contributed by owners, retained earnings, general and special reserves,

provisions, and valuation adjustments. Capital includes tier 1 capital (paid-up

shares and common stock), which is a common feature in all countries'

banking systems, and total regulatory capital, which includes several specified

types of subordinated debt instruments that need not be repaid if the funds

are required to maintain minimum capital levels (these comprise tier 2 and

tier 3 capital). Total assets include all non-financial and financial assets.

Bank regulatory

capital to risk-

weighted assets

(%)

The capital adequacy of deposit takers. It is a ratio of total regulatory capital

to its assets held, weighted according to risk of those assets.