What does BIR mean in ACCOUNTING
The Banking Intermediation Rate, often referred to as BIR, is a measure of the efficiency of banks in intermediating funds from savers to borrowers. It is calculated by dividing the total value of loans and other credit products issued by banks over a given period, usually one year, by the total amount of deposits held with those same banks over the same period. In other words, it measures how much banks help facilitate the flow of money between savers and borrowers.
BIR meaning in Accounting in Business
BIR mostly used in an acronym Accounting in Category Business that means Banking Intermediation Rate
Shorthand: BIR,
Full Form: Banking Intermediation Rate
For more information of "Banking Intermediation Rate", see the section below.
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Essential Questions and Answers on Banking Intermediation Rate in "BUSINESS»ACCOUNTING"
Final Words:
Overall, Banks' intermediation rate provides an important insight into their fiscal health; if they are not able to intermediate properly between depositors and borrowers then they may struggle financially going forward due to reduced demand for their services either due to low interest rates or poor economic conditions. By monitoring their BIR rates regularly banks can gain valuable insight into their performance compared to competitors as well as determine whether any improvements need to be made.