Session - 4 - FIN 441 Bank Management & Electronic Banking...

Info iconThis preview shows pages 1–13. Sign up to view the full content.

View Full Document Right Arrow Icon
Bank Management & Electronic Banking FIN 441
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 Session 4 Sources of Funds, Performance Evaluation and Bank Failure
Background image of page 2
3 Session 4 : Sources of Funds, Performance Evaluation and Bank Failure a. Inflow of funds b. Outflow of funds 2. Functions as collector of Funds a. Capital b. Deposit c. Borrowed Fund
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
4 Session 4 : Sources of Funds, Performance Evaluation and Bank Failure 3. Functions as users of Funds a. Lending Functions b. Investment Functions c. Cash Assets Functions d. Other Functions
Background image of page 4
5 Session 4 : Sources of Funds, Performance Evaluation and Bank Failure 4. Performance Evaluation of Banks Key Profitability Ratios in Banking Capital Equity Total Taxes After Income Net (ROE) Capital Equity on Return = Assets Total Taxes After Income Net (ROA) Assets on Return = Assets Total Income Interest Net Margin Interest Net = Assets Total Income t Noninteres Net Margin t Noninteres Net =
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
6 Session 4 : Sources of Funds, Performance Evaluation and Bank Failure 4. Performance Evaluation of Banks Key Profitability Ratios in Banking Assets Total Expenses Operating Total - Revenues Operating Total Margin Operating Bank Net = g Outstandin Shares Equity Common Taxes After Income Net (EPS) Share Per Earnings =
Background image of page 6
7 Session 4 : Sources of Funds, Performance Evaluation and Bank Failure 4. Performance Evaluation of Banks Breaking Down ROE N e t P r o f i t M a r g i n = N e t I n c o m e / T o t a l O p e r a t i n g R e v e n u e A s s e t U t i l i z a t i o n = T o t a l O p e r a t i n g R e v e n u e / T o t a l A s s e t s R O A = N e t I n c o m e / T o t a l A s s e t s E q u i t y M u l t i p l i e r = T o t a l A s s e t s / E q u i t y C a p i t a l R O E = N e t I n c o m e / T o t a l E q u i t y C a p i t a l
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
8 Session 4 : Sources of Funds, Performance Evaluation and Bank Failure 4. Performance Evaluation of Banks ROE Depends On Equity Multiplier Leverage or Financing Policies Net Profit Margin Effectiveness of Expense Management Asset Utilization Portfolio Management Policies
Background image of page 8
9 Session 4 : Sources of Funds, Performance Evaluation and Bank Failure 5. Bank Risks a. Credit Risk b. Liquidity Risk c. Market Risk d. Interest Rate Risk e. Earnings Risk f. Capital Risk
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
10 Session 4 : Sources of Funds, Performance Evaluation and Bank Failure Credit Risk The Probability that Some of the Bank’s Assets Will Decline in Value and Perhaps Become Worthless 5. Bank Risks
Background image of page 10
11 Session 4 : Sources of Funds, Performance Evaluation and Bank Failure 5. Bank Risks Credit Risk Measures Nonperforming Loans/Total Loans Provision for Loan Losses/Total Loans Provision for Loan Losses/Equity Capital Total Loans/Total Deposits
Background image of page 11

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
12 Session 4 : Sources of Funds, Performance Evaluation and Bank Failure 5. Bank Risks Liquidity Risk Probability the Bank Will Not Have Sufficient Cash and Borrowing Capacity to Meet Deposit Withdrawals and Other Cash Needs
Background image of page 12
Image of page 13
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/22/2011 for the course BBA FIN 441 taught by Professor Dewanmostafiz during the Fall '10 term at BRAC University.

Page1 / 40

Session - 4 - FIN 441 Bank Management & Electronic Banking...

This preview shows document pages 1 - 13. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online