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Bank Valuation: Understanding Key Ratios and Metrics

Tom Spencer

In the previous article , we looked at how banks make money and how they must meet capital requirements. In this article, we will explore the importance of profitability ratios and valuation metrics that are crucial when analyzing banks. We will examine each in turn. That is, net interest income divided by assets.

Metrics 88
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The age old tale of financial crises

Tom Spencer

By distributing 100 million sesterces from the imperial bank to reliable bankers around the Empire and dropping interest rates to zero for three years, Tiberius saved Rome and the other affected nations of Egypt, Greece, and France. In the face of illiquidity a bank cannot repay current liabilities or their depositholders.

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China Interest Rate Crisis Continues: 7-Day Interest Rate Doubles to 10% in One Week; China Bans Words "Cash Crunch"

MishTalk

The New York Times reports China Rates Approach Crisis Levels Despite Central Bank Measures. The central bank, the People’s Bank of China, said late Friday that it had provided more than 300 billion renminbi, or about $50 billion, in short-term funds to selected banks over a three-day period that week.

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ECB's Targeted Lending Spree Starts Out As Flop; Modern Monetary Insanity

MishTalk

Following on the "success" of the ECB''s LTRO (Long Term Refinance Operation) which did nothing to spur lending and everything to create the biggest sovereign bond bubble the world has ever seen, ECB president Mario Draghi announced a TLTRO or Targeted LTRO on September 4. Why TLTRO Won''t Spur Lending Banks may eventually take the money.

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Mish's Global Economic Trend Analysis: Reader Question: Does the.

MishTalk

Balanced Budget Ammendment Sign the Balanced Budget Petition. Reader Question: Does the Fed Balance Sheet Properly Reflect QE Announcements? The feds balance sheet doesnt reflect it. So if QE is $85B a month, where is it and why doesnt it show up in the Feds balance sheet.". Feds Balance Sheet.

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Small Business Survival Tips During COVID-19

Martinka Consulting

Or, if you’re sick of being cooped up and simply want to talk, give me a call or suggest we meet for a walking coffee (at a safe distance). Work with your bank , especially if you have a term loan and cash flow issues. On to a few miscellaneous thoughts on our current situation. This virus has affected every business.

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Greece Played Germany Like a Violin; Horrified Syriza Demands 'Icelandic' Default

MishTalk

Hello Mish Draghi revealed today that the current Intra-Eurosystem liabilities of the Bank of Greece is €118 billion. The Bank of Greece has not published the end of May balance sheet yet. Horrified Syriza Demands 'Icelandic' Default Today we learn the EU is calling an emergency meeting. Good luck with that.

Banking 28