a) Present the different objectives of the different economic entities that are interested in bank performance. What are the different measures of bank performance? Provide definitions and discussion...

1 answer below »
posted the file


a) Present the different objectives of the different economic entities that are interested in bank performance. What are the different measures of bank performance? Provide definitions and discussion on those measures where appropriate. b) Discuss the performance of UK banks in light of the current economic and health circumstances (i.e. the pandemic). Do large banks perform better than their smaller peers in this environment? Present empirical evidence and data to support your arguments where appropriate. c) Discuss the potential channels through which the relationship between banks and governments can create systemic risk. D) Discuss whether or not deposit insurance schemes are helpful to improve the health of the banking system in a country. E) Does the recent pandemic (COVID-19) make bank runs more likely? Discuss. Give at least 2 examples of recent government policies around the world (outside UK) adopted to avoid a financial crisis triggered by COVID-19. Explain the logic behind these policies. total should be around 1600 words
Answered Same DayMay 13, 2021

Answer To: a) Present the different objectives of the different economic entities that are interested in bank...

Himanshu answered on May 13 2021
139 Votes
a.
Different objectives of different economies entities that are interested in Bank performances are as under:
United States: Money preparation, fund management, trust and fiduciary services, and wealth management consulting are also available from U.S. Bank. U.S. Bancorp Investments provides services such as wealth saving, investing, banking, and brokera
ge.
United Kingdom: Our monetary policy goal in the UK is to preserve market stability. Subject to that, we endorse the Government's economic agenda, particularly its development and job goals. We must influence monetary factors in order to preserve monetary stability.
India: Its primary duties are to manage the issue and movement of Indian currency, to oversee and track financial institutions such as banks and non-bank financial companies, to devise the country's monetary policy, and to serve as the banker for the Central and State Governments.
Australia: According to the Reserve Bank Act of 1959, the RBA has three policy objectives: currency stability, price stability, and price stability. Full-time employment is maintained. Assuring the relative stability and well-being of the Australian population
France: The Banque de France is the French cornerstone of the Eurosystem, a centralised market comprised of the European Central Bank and the eurozone's state central banks. The three primary missions are monetary policy, financial stabilisation, and regional economic supports.
Traditional profitability metrics are similar to those found in other sectors, with the most often used being return on assets (RoA), return on equity (RoE), or cost-to-income ratio. Furthermore, due to the role of banks' intermediation functions, net interest margin is usually tracked. Key banks metrics are the following:
· Asset Yield on Earnings (EAY) The interest yield provided by a bank's interest-earning assets. It is calculated by dividing interest income by the average earning assets.
· Cost of Funds (COF): The rate of financing a bank's interest-bearing obligations. It is calculated by dividing interest rate by the average interest paying liabilities.
· Net Interest Margin (NIM): The net profitability of the bank's spread market is calculated. It is calculated by dividing net interest income by the average earned assets.
· Average Earning Assets: The properties that produce interest income and are frequently measured daily.
· Average Interest-Bearing Liabilities: Liabilities that carry interest costs that are often calculated on a regular basis.
· Non-Interest Expenses as a percentage of Total Revenue: The proportion of income from non-interest sources to overall sales.
· Non-performing loans: The loans classified as past due (Visible alpha, 2021)
b.
Performance of UK bank in present time:
Banks also provided additional financial assistance to small and medium-sized enterprises hit by coronavirus, in conjunction to government-backed programmes identified as the Coronavirus Business Failure Loan Program. Capital redemption breaks, overdrafts, working capital extensions, and asset-based financing are all examples of this. Mortgage payment vacations and commodity swaps are among the steps proposed by UK lenders to help households experiencing financial problems as a result of the coronavirus. While the outbreak briefly halted the property sector under the first lockdown, the market has recovered since May 2020, aided by the government's stamp duty holiday programme. As per Bank of England (BoE) results, gross mortgage lending in the United Kingdom hit £27.7 billion in February 2021,...
SOLUTION.PDF

Answer To This Question Is Available To Download

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here