The Ratio of Nonperforming Assets to Total Loans and Leases

question 61

True/False

The ratio of nonperforming assets to total loans and leases is considered to be a measure of a bank's market risk.

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Definitions:

Operating Leverage

A measure of how revenue growth translates into growth in operating income, determined by a company’s fixed versus variable costs.

Operating Cash Flows

The cash generated from the normal operations of a business, reflecting its ability to generate sufficient cash to maintain and develop its operations.

Units Sold

The total number of product units that have been sold during a specific time period.