Texas ratio

noun

A measure of a bank's creditworthiness, equal to ratio of the bank's nonperforming assets (nonperforming loans plus other real estate owned) to the sum of its tangible equity capital plus loan-loss reserves.

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Meanings

nounTexas ratio (plural Texas ratios)

plural Texas ratios

  1. businessA measure of a bank's creditworthiness, equal to ratio of the bank's nonperforming assets (nonperforming loans plus other real estate owned) to the sum of its tangible equity capital plus loan-loss reserves.
Cite this entry
APA

Texas ratio. (n.d.). In WatkinsX Dictionary. Retrieved November 4, 2026, from https://dictionary.watkinsx.com/word/Texas%20ratio

MLA

“Texas ratio.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/Texas%20ratio. Accessed November 4, 2026.

Chicago

WatkinsX Dictionary, s.v. “Texas ratio,” accessed November 4, 2026, https://dictionary.watkinsx.com/word/Texas%20ratio.

Source: Texas ratio on Wiktionary, CC BY-SA 4.0.