What is CASA Ratio? CASA stands for Current Account and Savings Account, and the CASA Ratio is a key metric used to measure the proportion of a bank’s total deposits that come from these two sources. Since CASA deposits are a low-cost source of funds for banks, a higher CASA ratio indicates better financial efficiency…
Banking Stock Analysis
Liquidity Coverage Ratio (LCR): Importance, Formula & Impact on Banks
What is Liquidity Coverage Ratio (LCR)? The Liquidity Coverage Ratio (LCR) is a crucial financial metric that ensures banks maintain an adequate level of high-quality liquid assets (HQLA) to cover short-term cash outflows in times of financial stress. Introduced under the Basel III framework, the LCR aims to strengthen banks’ liquidity positions and improve their…