How liquidity ratio of a Bank depends their growth? What you mean by vertical growth?

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Accepted Answer

Liquidity ratio of a bank impacts its growth by determining its ability to meet short-term obligations. Vertical growth refers to expansion within the same industry.

Liquidity ratio measures a bank's ability to meet short-term liabilities with its short-term assets.
A higher liquidity ratio indicates a bank has more assets readily available to cover its liabilities, which can support growth by providing financial stability.
Vertical growth in banking refers to expanding services or operations within the same industry, such as offering new financial products or entering new markets.
Vertical growth can help a bank increase market share, revenue, and customer base without diversifying into unrelated industries.

How liquidity ratio of a Bank depends their growth? What you mean by vertical growth?

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