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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. It is not a useful metric for comparing different business lines.

Metrics 88
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Spotlight on European Bank Lending: Capital Impairment to the Forefront

MishTalk

As noted in German Two-Year Bonds Have Negative Yield, Demand High; Euro Bond Bubble Guaranteed to Burst , " Banks lend (provided they are not capital impaired), when credit-worthy borrowers want credit and banks perceive risks worth lending." The New York Times DealBook explains Europe Fears Banks Lack Cash Cushion to Cover Bad Loans.

Banking 67
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Rising COVID cases, falling economy

Tom Spencer

Since the start of February this year, the Fed has expanded its balance sheet by more than $2.4 To put that in context, the Fed was created in 1913, and its total balance sheet assets only reached $2.4 trillion in assets, but only 2 months to achieve the same amount of balance sheet expansion this year.

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Reader Q&A On Bitgold

MishTalk

Think of it as your bank and Visa with Visa powering payments. Gold can be redeemed via bank wire, credit card or we can even deliver physical anywhere in the world if you prefer to hold it in possession. BitGold users may redeem funds from their BitGold account at any time, up to the value of their account balance.

Banking 28