Is the description of Current Loans-to-Assets Ratio correct?
Posted: Mon Jul 13, 2020 11:33 am
Hi, I bought a Banking and a Financial DLC the other day.
I'm trying to understand the game.
Isn't the description wrong with this?
This is the same as the percentage of total assets loaned to the customer.
However, there seems to be a term called "Loan to Deposit Ratio" in the financial terminology.
Since the word "customer deposits" is used in the description of DLC, wasn't it originally planned to be used?
I'm not a banking expert, so I have no idea what is appropriate for this DLC.
I'm trying to understand the game.
Isn't the description wrong with this?
Calculating the display on the game is "Current Loans-to-Assets Ratio = Loans to Customers / Total Assets".Current Loans-to-Assets Ratio
The Loans-to-Assets ratio is calculated by dividing the bank's total assets by its customer deposits.When it is higher than the Maximum Loans-to-Assets Ratio, the bank will stop giving out new loans.
This is the same as the percentage of total assets loaned to the customer.
However, there seems to be a term called "Loan to Deposit Ratio" in the financial terminology.
Since the word "customer deposits" is used in the description of DLC, wasn't it originally planned to be used?
I'm not a banking expert, so I have no idea what is appropriate for this DLC.