Rose-HashemiteUniversity.pptVIP

Chapter Six;Key Topics;Value of the Bank’s Stock;Value of a Bank’s Stock Rises When:;Value of Bank’s Stock if Earnings Growth is Constant;Key Profitability Ratios in Banking;Key Profitability Ratios in Banking (cont.);Breaking Down ROE;ROE Depends On:;Determinants of ROE in a Financial Firm;Components of ROE for All Insured U.S. Banks (1992-2007);A Variation on ROE;Breakdown of ROA;Quick Quiz;Bank Risks;Credit Risk;Credit Risk Measures;Liquidity Risk;Liquidity Risk Measures;Market Risk: Comprises Price Risk and Interest Rate Risk;Market Risk Measures;Interest Rate Risk;Interest Rate Risk Measu