SLR is also known as Statutory Liquidity Ratio, which can be maintained either cash or gold; meanwhile, CRR needs to be maintained only in cash. Statutory Liquidity Ratio (SLR) Cash Reserve Ratio (CRR) In the case of SLR, banks are asked to have reserves of liquid assets, which include ...
It measures an entity's ability to use its assets to cover its liabilities. If the ratio is higher, the business is efficiently using its assets to cover its liabilities. If the ratio is lower, the company is not covering its liabilities with current assets and may have liquidity problems. ...
What is a Balance Sheet? It records a company's assets, shareholders' and liabilities equity at a particular point of time. To explore more on consolidated balance sheet, stay tuned to BYJU'S.
The Reserve Bank of India (RBI) is planning a prompt corrective action (PCA) framework and a different supervisory system for non-banking financial companies (NBFCs) by 2022. ... This means NBFCs will have to strictly meet benchmarks on capital requirement, non-performing assets (NPAs), an...
The gap between these two limits is a key financial indicator. A high utilisation of your credit limit (a smaller gap) can negatively affect your credit score, as it may suggest over-reliance on credit. In contrast, a lower utilisation ratio (a larger gap) is generally v...
risks like algorithmic bias and data privacy. “To harness the benefits, it is critical to address the attendant risks early in the adoption cycle,” said the RBI. Accordingly, the committee was set up to “recommend a robust, comprehensive, and adaptable AI framework for the financial sector...
Nationalization is the process of taking privately-controlled companies, industries, or assets and putting them under the control of the government. Nationalization often happens in developing countries and can reflect a nation's desire to control assets or to assert its dominance over foreign-owned ...
Liquidity is the ease with which any asset can be sold and converted to cash. Thus ‘liquidity risk’ is the risk of not being able to make this conversion easily. Liquidity risk can put a company in a precarious position. If it is unable to sell its assets or investments fast enough ...
Equity share, normally known as ordinary share is the main source of finance of an organization giving investors the right to vote, share profits and claim on assets. Stay tuned to BYJU'S to learn more.
A cash ratio is a financial ratio used to assess a company's liquidity position. The cash ratio measures the proportion of a company's assets that are "cash" or "cash equivalents" (such as short-term government securities). Assets are first classified into current assets and non-current ass...