Which of the following ratios would be a measure of credit risk?
A)Net charge-offs of loans/Total loans and leases
B)Interest on CDs/Total CDs issued
C)Interest Sensitive Assets/Interest Sensitive Liabilities
D)Equity Capital/Total Assets
E)None of the options is correct

Question

Quizplus · Accepted Answer

Net charge-offs of loans/Total loans and leases is a measure of the percentage of loans that have been written off due to credit risk.

Which of the Following Ratios Would Be a Measure of Credit