In finance, the infection ratio describes the relationship between non-performing
portfolios and the total loan portfolio. The infection ratio is used to work out the relationship between the non-performing part of the portfolio (i.e., loans not efficiently being recovered) and the total loan portfolio of a bank or other financial entity. The ratio is used to evaluate infection in the loan portfolio between two different time periods, or amongst various organizations, or against an industry standard. The users of this
financial management technique are the
central bank
A central bank, reserve bank, national bank, or monetary authority is an institution that manages the monetary policy of a country or monetary union. In contrast to a commercial bank, a central bank possesses a monopoly on increasing the mo ...
s/regulators,
credit rating agencies, and institutions in the business of giving credit lines/loans.
References
Credit risk
Financial ratios
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