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Rabeka Profile
rabeka
rabeka
@rabeka
  • 102.798406TMAC
  • 16000VP
  • 64000BW
July 2022
Posts
rabeka
@rabeka in Status·21 hours ago

This is the ratio of the bank’s non-performing loans to its total loans. A high NPL ratio #indicates higher credit risk and #potential loan losses.

rabeka
@rabeka in Status·21 hours ago

Let’s say a bank has a $1-billion loan portfolio. Because the #borrowers have missed #payments for more than 90 days, $100 million (or 10%) of these are classified as non-performing loans.

rabeka
@rabeka in Status·21 hours ago

If the bank has to set aside a #provision of 50% for these non-#performing loans, it would need to allocate $50 million toward provisions. This means that the bank’s net loan portfolio would be $950 million.

rabeka
@rabeka in Status·21 hours ago

Let’s now #imagine that the bank must write off these non-#performing loans because it will not be able to recover $20 million from them.

rabeka
@rabeka in Status·21 hours ago

 As a result, the bank’s loan #portfolio would drop to $930 million, which would have an #effect on the bank’s profitability and capital adequacy ratios.

rabeka
@rabeka in Status·21 hours ago

This example #illustrates how non-performing loans can have #significant implications for a bank’s financial position, and why it is crucial for banks to manage their loan portfolios effectively to minimize the risk of such loans.

rabeka
@rabeka in Status·21 hours ago

This is the ratio of a bank’s #operating costs to its operating income. A lower ratio #indicates higher efficiency and profitability.

rabeka
@rabeka in Status·21 hours ago

For example, let’s say a bank has total #operating expenses of $500 #million and a total operating income of $1 billion. The cost-to-income ratio for this bank would be:

rabeka
@rabeka in Status·21 hours ago

This means that the #bank spends $0.50 on operating costs for every dollar of #operational income it generates.

rabeka
@rabeka in Status·21 hours ago

 In #general, a lower cost-to-income ratio is preferable since it shows that the bank is more #profitable and efficient because it can generate more income with fewer expenses.

rabeka
@rabeka in Status·21 hours ago

This is the ratio of a bank’s loan loss #provisions to its non-#performing loans. It reflects the bank’s ability to cover potential loan losses with its provisions.

rabeka
@rabeka in Status·21 hours ago

For example, let’s say a bank has loan loss #provisions of $100 million and #nonperforming loans of $50 million. The loan loss provisions coverage ratio for this bank would be:

rabeka
@rabeka in Status·21 hours ago

The capital #adequacy ratio assesses a bank’s ability to pay #liabilities and handle credit and operational risks.

rabeka
@rabeka in Status·21 hours ago

 A good CAR #indicates that a bank has enough capital to absorb losses and avoid insolvency, #protecting depositors’ funds.

rabeka
@rabeka in Status·21 hours ago

The Bank of #International Settlements separates capital into Tier 1 and Tier 2, with Tier 1 being the primary #measure of financial health, including shareholder equity and retained earnings.

rabeka
@rabeka in Status·21 hours ago

 Tier 2 is #supplementary capital, including revalued and #undisclosed reserves and hybrid securities.

rabeka
@rabeka in Status·21 hours ago

Risk-weighted assets are a bank’s assets #weighted by risk, with each asset class #assigned a risk level based on its likelihood to decrease in value

rabeka
@rabeka in Status·21 hours ago

The risk #weighting determines the sum of the #bank’s assets and varies for each asset class, such as cash, debentures and bonds.

rabeka
@rabeka in Status·21 hours ago

For #example, if a bank has Tier 1 capital of $1 billion, Tier 2 capital of $500 #million and risk-weighted assets of $10 billion, the CAR would be:

rabeka
@rabeka in Status·21 hours ago

In this case, the bank’s CAR is 15%, which #indicates that it has sufficient #capital to cover its potential losses from its lending and investment activities.

rabeka
@rabeka in Status·21 hours ago

#Decentralized finance (DeFi) enables #financial systems that are transparent, secure and accessible to all.

rabeka
@rabeka in Status·21 hours ago

 introduced the world to #decentralized currency and challenged the #centralized banking system.

rabeka
@rabeka in Status·21 hours ago

The GFC and the collapse of SVB #highlighted the risks of #centralized financial systems, leading to an increased interest in the decentralization of banking.

rabeka
@rabeka in Status·21 hours ago

#However, DeFi also has its share of risks that #should not be neglected

 
 

rabeka
@rabeka in Status·21 hours ago

#Custodia has applied to be overseen by U.S. #regulators but has been repeatedly passed over. 

 
 

rabeka
@rabeka in Status·21 hours ago

The recent #collapse and subsequent bailout of several #crypto friendly banks that proved to be insolvent has added insult to injury to #Custodia, which claims to be fully solvent and compliant. 

 
 

rabeka
@rabeka in Status·21 hours ago

#NBC #Reporter #Ben #Collins highlighted the fact that an account linked to #California #Congresswoman #Grace #Napolitano got totally overrun by #crypto scam bots. 

 
 

rabeka
@rabeka in Status·21 hours ago

Greenpeace highlighted the #Bitcoin network’s relatively high electricity consumption in a new campaign that features a cool piece of art by artist #Von #Wong called “#Skull of #Satoshi”.

 
 

rabeka
@rabeka in Status·21 hours ago

#Bitcoiners ended up loving the image. One of them proposed that it was worth at least one #Bitcoin. #Von #Wong himself claimed he was paid less than “a fraction of that.” 

 
 

rabeka
@rabeka in Status·21 hours ago

He later tweeted he was glad to be involved in the conversation and that #Bitcoin environmentalists were adding depth to his understanding of the #topic

 
 

rabeka
@rabeka in Status·21 hours ago

#Von #Wong later tweeted that transitioning the network to the less consumptive but more centralized Proof-of-Stake (#PoS) system (like #Ethereum) went against the ethos of #Bitcoin

 
 

rabeka
@rabeka in Status·21 hours ago

However, a more #energy-efficient update for the world’s favorite #cryptocurrency is still needed. 

 
 

rabeka
@rabeka in Status·21 hours ago

#Bitcoin maxis this week were up in arms about the fact that #Ordinals—a protocol which brings non-fungible #digital #assets to Bitcoin—would be making an appearance at the Bitcoin #Miami conference. 

 
 

rabeka
@rabeka in Status·21 hours ago

Some of the less #zealous #Bitcoin fans took this as the best form of promotion for the conference. 

 
 

rabeka
@rabeka in Status·21 hours ago

G7 to collaborate on tighter crypto regulation: Report
#news #crypto

rabeka
@rabeka in Status·21 hours ago

leaders from #japan, the united states, the #united #kingdom, #canada, #france, #germany, and the #european union are expected to outline a global cooperative strategy for digital assets in may. 

 
 

rabeka
@rabeka in Status·21 hours ago

The next #G7 meeting might bring a push from the seven biggest democracies for tougher regulations on #cryptocurrencies around the world, #Kyoto news agency reports on March 25.

 
 

rabeka
@rabeka in Status·21 hours ago

Together, leaders from #Japan, the #United #States, the United #Kingdom, #Canada, #France, #Germany, and the #European Union will outline a cooperative strategy to increase #crypto transparency and enhance consumer protections, 

 
 

rabeka
@rabeka in Status·21 hours ago

as well as address potential risks to the global financial system, officials told #Kyoto. This year's summit is set to happen in #Hiroshima, in May.

 
 

rabeka
@rabeka in Status·21 hours ago

Among #G7 members, Japan already regulates #cryptocurrencies, while the #European #Union’s #Markets in #Crypto-Assets (#MiCA) regulation is set to go into effect in 2024. 

 
 

rabeka
@rabeka in Status·21 hours ago

The #United #Kingdom is gradually developing its #crypto framework, with a special category for crypto assets on tax forms recently introduced, as well as plans for a digital pound.

 
 

rabeka
@rabeka in Status·21 hours ago

#Canada treats #digital #assets as securities and the #United #States currently applies existing financial regulations, with some anticipating a #crypto regulatory framework from lawmakers in the coming months.

 
 

rabeka
@rabeka in Status·21 hours ago

Parallel efforts towards standards for #digital #assets are being made by the #Financial #Stability #Board (#FSB), the International Monetary Fund (#IMF), 

 
 

rabeka
@rabeka in Status·21 hours ago

and the Bank for International Settlements (#BIS), the group of the 20 biggest economies of the world — collectively known as #G20 — announced in February during a meeting in #Bengaluru, #India.

 
 

rabeka
@rabeka in Status·21 hours ago

Recommendations on the regulation, supervision and oversight of #global #stablecoins, #crypto assets activities and markets are scheduled to be delivered by July and September. It is unclear, however, what the overall tone of the recommendations will be.

 
 

rabeka
@rabeka in Status·21 hours ago

For instance, in February the #IMF released an action plan on #crypto #assets, urging countries to abolish legal tender status for #cryptocurrencies

 
 

rabeka
@rabeka in Status·21 hours ago

The #IMF opposition to #crypto as legal tender is well known, especially since #El #Salvador adopted #Bitcoin as its official #currency in September 2021. 

 
 

rabeka
@rabeka in Status·21 hours ago

The fund, however, has been advocating for countries to adopt greater #crypto regulation, while it's working on an interoperable #central #bank #digital currency platform to connect multiple global #CBDCs and enable cross-border transactions.

 
 

rabeka
@rabeka in Status·21 hours ago

Community-driven crypto projects still thriving despite headwinds
#news #crypto

rabeka
@rabeka in Status·21 hours ago

Community engagement has always been a key aspect of #crypto, and it's proving its value during bear #markets.

 
 

davomaster
@davomaster in Status·6 months ago

Live the Life of Your Dreams: Be brave enough to live the life of your dreams according to your vision and purpose instead of the expectations and opinions of others. #life #motivation

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lucky25
@lucky25 in Status·6 months ago

🔺The most used dApp in the past 7 days built its home on NEAR Protocol!🔺

#crypto #news #lifestyle #today #nft #NEAR

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