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Persistent link: https://www.econbiz.de/10011432634
We introduce a new performance scheme for banks, inspired by the Du Pont scheme for corporates, which clarifies the relationship between return on equity (RoE), risk-adjusted return on capital (RAROC) and return on assets (RoA). The scheme highlights how common financial ratios risk factors...
Persistent link: https://www.econbiz.de/10012941831
We introduce a new performance scheme for banks, inspired by the Du Pont scheme for corporates, which clarifies the relationship between return on equity (ROE), risk-adjusted return on capital (RAROC) and return on assets (ROA). The scheme highlights how common financial ratios as well as risk...
Persistent link: https://www.econbiz.de/10013034273