Asset Quality Review

An Asset Quality Review (AQR) is a process used to assess the health of financial institutions, particularly banks. It involves examining the quality of a bank's assets, such as loans and investments, to ensure they are properly valued and low-risk. Regulators or independent experts analyze whether the bank has adequate provisions for potential losses. The goal of an AQR is to identify any issues that could threaten the bank's stability, ensuring that it can withstand economic challenges and protect depositors' money. This review helps maintain trust in the financial system.