In finance, the infection ratio describes the relationship between non-performing

portfolio Portfolio may refer to: Objects * Portfolio (briefcase), a type of briefcase Collections * Portfolio (finance), a collection of assets held by an institution or a private individual * Artist's portfolio, a sample of an artist's work or a c ...

s and the total loan portfolio. The infection ratio is used to work out the relationship between the non-performing part of the portfolio (i.e., loans not efficiently being recovered) and the total loan portfolio of a bank or other financial entity. The ratio is used to evaluate infection in the loan portfolio between two different time periods, or amongst various organizations, or against an industry standard. The users of this

financial management Financial management is the business function concerned with profitability, expenses, cash and credit, so that the "organization may have the means to carry out its objective as satisfactorily as possible;" the latter often defined as maximizin ...

technique are the

central bank A central bank, reserve bank, or monetary authority is an institution that manages the currency and monetary policy of a country or monetary union, and oversees their commercial banking system. In contrast to a commercial bank, a central b ...

s/regulators,

credit rating agencies A credit rating agency (CRA, also called a ratings service) is a company that assigns credit ratings, which rate a debtor's ability to pay back debt by making timely principal and interest payments and the likelihood of default. An agency may ra ...

, and institutions in the business of giving credit lines/loans.

References

Financial ratios {{finance-stub