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0:16
YouTube
The Analyst Arc
Credit Risk Series | Part 18 💡 What is Leverage Ratio in Banking? How much debt is too much? 👇
Credit Risk Series | Part 18 The Leverage Ratio measures a bank’s capital compared to its total assets. Formula: Leverage Ratio = Capital / Total Assets It shows how much debt a bank is using to fund its assets. Example: If a bank has ₹10 crore capital and ₹200 crore assets, Leverage Ratio = 5% (1:20) This means the bank has ₹1 of ...
469 views
1 month ago
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