Credit Risk Management is Essential Adequacy of the bank's current and potential sources of liquidity, including the strength of its funds management practices. % of Liquid Assets to Total Assets Assets Liability Mismatch Importance to maintain Interest income Ratio and Non-Interest Income Ratio Performance indicators such as Profit Margin, Return on Assets, Return on Equity give basis of Larning Quality of banks- Amount and trend in earnings and robustness of expected earnings growth in future It is a Bank's capacity to maintain capital commensurate with the nature and extent of all types of risks, as also the ability of the bank's management to identify, measure, monitor and control these risks