TCE ratio: related pages

Cost/income ratio

Most often used for banks: operating expenses ÷ operating income.

Interest spread

(interest income ÷ interest earning assets) - (interest expense ÷ interest bearing liabilities).

Non-performing assets (NPA)

Loans that are not being repaid or serviced through interest payments on time.

Non-interest income

For banks, Non-interest income ÷ operating income.

Reserve requirement

A proportion of deposits that banks are not allowed to lend.

Return on average assets (ROAA)

Net profit ÷ average assets. An efficiency ratio relevant to banks.

Interest margin

Interest income minus interest expenses as a percentage of average interest earning assets.

Tier 2 capital

A broader measure than tier one capital. Share and subordinated debt capital with some adjustments.

Dynamic provisioning

The adjustment of bank's provisions for loans for the economic cycle.