In analyzing a bank's credit risk, it's important not only to look at a bank's net loss percentage and non-current loan percentage, earnings coverage ratio, and loan allowance to net loan losses ratios, but also important to look at the bank's loan mix, including examining the % of more risky types of loans a bank has such as other real estate loans and construction and development loans.

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It is important to analyze a bank's loan mix to fully understand their credit risk profile. This includes examining percentages of different loan types, including those that may be riskier, such as construction and development loans or other real estate loans.

In Analyzing a Bank's Credit Risk, It's Important Not Only