Texas Ratio


Texas Ratio
A ratio developed by Gerald Cassidy and other analysts at RDC Capital Markets to measure the credit problems of particular banks or regions of banks. The Texas ratio takes the amount of a bank's non-performing assets and loans, as well as loans delinquent for more than 90 days, and divides this number by the firm's tangible capital equity plus its loan loss reserve. A ratio of more than 100 (or 1:1) is considered a warning sign.

The Texas ratio was developed as an early warning system to identify potential problem banks. It was originally applied to banks in Texas in the 1980s and proved useful for New England banks in the early 1990s. This ratio can be useful when an asset held on a bank's balance sheet is falling in value, such as with oil reserves or mortgage assets.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Texas ratio — The Texas ratio is a measure of a bank s credit troubles. Developed by Gerard Cassidy and others at RBC Capital Markets, it is calculated by dividing the value of the lender s non performing loans by the sum of its tangible equity capital and… …   Wikipedia

  • Texas ratio — noun A measure of a banks creditworthiness, equal to ratio of the banks nonperforming loans to the sum of its tangible equity capital and loan loss reserves …   Wiktionary

  • Texas Christian Academy — is a private college preparatory school in Waco, Texas.The school was created in 2000 from the merger of Waco Christian School and Waco Covenant Academy. The school mascot is the Star and Lady Star. The Head Football Coach and Athletic Director… …   Wikipedia

  • Texas State Technical College-Waco — Texas State Technical College of Waco is a public college that was founded in 1965. It is located in Waco, Texas, in McLennan County. The average tuition is $5,500. The undergraduate to faculty ratio is 30:1. It has an undergraduate total of… …   Wikipedia

  • Texas Education Agency Gold Performance Acknowledgement Criteria — In addition to the Texas Education Agency accountability ratings system used to rank campuses and districts, TEA also awards schools for performance on additional categories not included in the accountability ratings system. The awards are known… …   Wikipedia

  • Texas — This article is about the U.S. state. For other uses, see Texas (disambiguation). State of Texas …   Wikipedia

  • Texas's 22nd congressional district elections, 2006 — The 2006 Texas 22nd congressional district election for the 110th Congress was held on November 7, 2006, and attracted considerable attention because this district was represented by former House Majority Leader Tom DeLay, a prominent member of… …   Wikipedia

  • Texas-Diamantschildkröte — Diamantschildkröte Ausgewachsenes Weibchen der Diamantschildkröte Systematik Ordnung: Schildkröten (Testudinata) …   Deutsch Wikipedia

  • Oxidizable carbon ratio dating — is a method of dating in archaeology and earth science that can be used to derive or estimate the age of soil and sediment samples up to 35,000 years old. The method is considered by some to be experimental, and it is not as widely used in… …   Wikipedia

  • Trans-Texas Corridor — The Trans Texas Corridor (TTC) is a transportation network in the planning and early construction stages in the U.S. state of Texas. The network, as originally envisioned, would be composed of a convert|4000|mi|km|sigfig=2|sing=on network of… …   Wikipedia


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.