Current and savings account ratio (CASA RATIO). how is it is going to impact the banking business.
2007-02-08 15:03:09 · 2 answers · asked by Anonymous in Business & Finance ➔ Other - Business & Finance
The CASA ratio is the Current Account and Savings Account Ratio. It is calculated by taking the total demand deposits (e.g. checking, savings, money market) accounts and dividing by the total deposit base.
It is used to show the source of a bank's funding, whether from short-term liquid deposits, long-term investments or other sources. It's impact is mostly seen when there is a shift in rates. For example, if the yield curve gets steeper (longer term rates go higher than short-term rates or short term rates fall faster than long term rates), then the yield spread goes up faster for banks with a higher CASA ratio because they are funded by cheaper short-term current accounts than more expensive longer term funds.
2007-02-11 12:53:50 · answer #1 · answered by csanda 6 · 0⤊ 0⤋
Casa Ratio
2017-01-12 16:12:43 · answer #2 · answered by ? 4 · 0⤊ 0⤋