Asset Quality Assessment

Asset Quality Assessment (AQA) is a process used to evaluate the health and risk level of a financial institution’s assets, such as loans and investments. Experts review the quality and performance of these assets to identify potential problems, like defaults or declines in value. AQA helps ensure that institutions maintain sound financial practices, comply with regulations, and provide accurate information to stakeholders. Essentially, it’s a check-up to confirm that a bank or finance company is managing its money wisely and can handle potential risks effectively.