Infection ratio

Infection ratio

Infection ratio is a financial term describing the relationship between non-performing portfolios versus the total loan portfolio. Infection ratio is used to work out the relationship between non-performing portfolio (i.e. loans not efficiently being recovered) to total loan portfolio of a bank etc. The ratio is used to evaluate/compare infection in the loan portfolio between two different time periods, or amongst various organization, industry standard. The users of this financial management technique are the central banks/regulators, credit rating agencies, and institutions in the business of giving credit lines/loans.


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