Infection ratio

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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 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 user of this financial management technique are the central banks/ regulators, credit rating agencies, and institutions in the business of giving credit lines/ loans.