Banking Analytics: Understanding Credit Risk with the Texas Ratio

Suzanne Jenkins and Reed Romanko

On the Economy from Federal Reserve Bank of St. Louis

Abstract: Developed in the 1980s during the Texas banking crisis, the Texas ratio offers an indicator of a bank’s health by measuring the institution’s troubled loans against its capital resources to absorb losses.

Keywords: Texas ratio; troubled loans; bank capital; nonperforming loans (search for similar items in EconPapers)
Date: 2025-11-04
New Economics Papers: this item is included in nep-rmg
Note: This series is part of ongoing work by the Supervisory Policy and Risk Analysis team to highlight key banking metrics in monitoring the health of the banking system, a function of the St. Louis Fed’s Supervision, Credit and Learning Division.
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.stlouisfed.org/on-the-economy/2025/nov ... perature-texas-ratio Full text (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:l00001:102041

Access Statistics for this paper

More papers in On the Economy from Federal Reserve Bank of St. Louis Contact information at EDIRC.
Bibliographic data for series maintained by Scott St. Louis ().