A well-managed bank tries to keep the ratio of nonperforming loans to total loans at about 8% to 10%.

Name: A well-managed bank tries to keep the ratio of nonperforming loans to total loans at about 8% to 10%.
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Question

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A well-managed bank tries to keep the ratio of nonperforming loans to total loans as low as possible, ideally below 5%. An 8% to 10% ratio would suggest a high level of risk and potential financial instability for the bank.

A Well-Managed Bank Tries to Keep the Ratio of Nonperforming