Measuring Performance and Profitability of a Financial Institution

Measuring Performance and Profitability of a Financial Institution PDF Author: Morgan Bright Gordon
Publisher:
ISBN:
Category :
Languages : en
Pages : 5

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Book Description
Recent upheavals in the global financial sector have exacerbated the situation in terms of stringent regulatory compliances and restrictions. Capital requirements are increasing and achieving revenue growth continues to be a challenge amidst weak macro-economic conditions. These forces have led to eroding margins for financial institutions and are severely testing their ability to achieve sustainable profitability. The situation actually warrants financial institutions to review their conventional methodology of measuring and reporting business performance. This article takes a closer look at FTP and how it can add value to the banking organization for better performance management at the granular level.

Measuring Performance and Profitability of a Financial Institution

Measuring Performance and Profitability of a Financial Institution PDF Author: Morgan Bright Gordon
Publisher:
ISBN:
Category :
Languages : en
Pages : 5

Get Book Here

Book Description
Recent upheavals in the global financial sector have exacerbated the situation in terms of stringent regulatory compliances and restrictions. Capital requirements are increasing and achieving revenue growth continues to be a challenge amidst weak macro-economic conditions. These forces have led to eroding margins for financial institutions and are severely testing their ability to achieve sustainable profitability. The situation actually warrants financial institutions to review their conventional methodology of measuring and reporting business performance. This article takes a closer look at FTP and how it can add value to the banking organization for better performance management at the granular level.

The Ernst & Young Guide to Performance Measurement For Financial Institutions: Methods for Managing Business Results Revised Edition

The Ernst & Young Guide to Performance Measurement For Financial Institutions: Methods for Managing Business Results Revised Edition PDF Author: Ernst & Young
Publisher: McGraw-Hill Companies
ISBN:
Category : Business & Economics
Languages : en
Pages : 380

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Book Description
The internationally recognized accounting and financial consulting firm of Ernst & Young looks at all aspects of profitability and provides hands-on guidance to profitability philosophies and structures; balance sheet, revenue and expense components; transfer pricing of funds; planning and budgeting; and performance measurement.

Performance Measurement in Financial Institutions in an ERM Framework

Performance Measurement in Financial Institutions in an ERM Framework PDF Author: Ashish Dev
Publisher: Bloomberg Press
ISBN:
Category : Business & Economics
Languages : en
Pages : 210

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Book Description
Focusing on internal business unit performance, this in-depth practitioner guide addresses both traditional and risk-adjusted performance measures in financial institutions, providing you with the tools to implement a 'balanced scorecard' approach to performance measurement.

Measuring the Performance and Achievement of Social Objectives of Development Finance Institutions

Measuring the Performance and Achievement of Social Objectives of Development Finance Institutions PDF Author: Manuela Francisco
Publisher: World Bank Publications
ISBN:
Category : Access to Finance
Languages : en
Pages : 38

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Book Description
Abstract: This paper develops and tests a proposed methodology that puts forward a new integrated method for evaluating the performance of development finance institutions. This methodology applies assessment criteria that take into account both the social objective that the development finance institution addresses and the subsidies it received in order to achieve such an objective. This methodology is applied to two pilot case studies-Banadesa (Honduras) and Banrural (Guatemala). The authors calculate the previously tested subsidy dependence index, which measures the degree of an institution's subsidy dependence. The paper develops and estimates a new measure-the output index- which indicates the level to which the institution fulfills the social objectives of the state. The analysis integrates the subsidy dependence index and the output index to assess the effectiveness associated with meeting the social objective. The findings suggest that the integration of the two indexes can constitute the basis of a meaningful evaluation framework for the performance of development finance institutions. This new methodology can also be a useful metric for policy makers who are seeking to decide on an optimal allocation of scarce funds for development finance institutions that pursue social goals and for management that seeks improved performance outcomes.

Financial Performance Measures and Value Creation: the State of the Art

Financial Performance Measures and Value Creation: the State of the Art PDF Author: Daniela Venanzi
Publisher: Springer Science & Business Media
ISBN: 884702451X
Category : Business & Economics
Languages : en
Pages : 81

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Book Description
The choice of financial performance measures is one of the most critical challenges facing organizations. The accounting-based measures of financial performance have been viewed as inadequate, as firms began focusing on shareholder value as the primary long-term objective of the organization. Hence, value-based metrics were devised that explicitly incorporate the cost of capital into performance calculations. Despite the increasing emphasis on these value-based measures, no definitive evidence exists of which metric works better than others, and on the extent to which any of them is superior to traditional accounting measures. In this scenario, the objective of this book is contributing to the ongoing dialogue on the appropriateness of different financial performance measures, by providing a systematic and updated review of the major value-based measures, by highlighting their respective strengths and weaknesses and by comparing the main international empirical evidence on their effectiveness. This book can be a powerful tool for guiding managers and graduate students in the “tangled forest” of the existing metrics, by providing them with the quick, but adequate knowledge for consistently adopting them.

Financial Performance Measurement

Financial Performance Measurement PDF Author: Diana Gaciukia Makunyi, Chris Masakala, Jackson Mnago Ndungo, Dr. Rutto Peter Ketyenya, Dr. Egungwu, Ikenna, Lemein Korei Koitamet
Publisher: AJPO Journals USA LLC
ISBN: 9914745555
Category : Business & Economics
Languages : en
Pages : 114

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Book Description
TOPICS IN THE BOOK Impact of Micro Finance Institutions on Poverty Eradication in Meru South Sub-County, Kenya The Role of Budgeting Process in Financial Performance: A Case Study of Bugisu Cooperative Union Ltd Mbale, Uganda Effect of Information Sharing Function on Financial Performance of Savings and Credit Co-Operative Societies Performance Measurement, Growth and Structure of Commercial Banks in East Africa Intellectual Capital and Corporate Performance in Nigeria Banks Effect of Financial Access on the Performance of Social Entrepreneurship Firms in Kenya

The Ernst & Young Guide to Performance Measurement for Financial Institutions

The Ernst & Young Guide to Performance Measurement for Financial Institutions PDF Author:
Publisher:
ISBN:
Category :
Languages : en
Pages :

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Book Description


Measuring Performance for Business Results

Measuring Performance for Business Results PDF Author: M. Zairi
Publisher: Springer Science & Business Media
ISBN: 9401113025
Category : Business & Economics
Languages : en
Pages : 322

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Book Description
Financial measures have traditionally been the cornerstone of the perform ance measurement system. In recent years, there has been a shift from treating financial figures as the foundation for performance measurement to treating them as one among a broader set of potential financial measures. Changes in cost structures and the manufacturing and competi tive environment have been responsible for the change of emphasis. In today's worldwide competitive environment companies are compet ing in terms of product quality, delivery, reliability, after-sales service and customer satisfaction. None of these variables are measured by traditional financial measures, despite the fact that they represent the major goals of world-class manufacturing companies. By focusing mainly on financial variables there is a danger that the performance reporting system will motivate managers to focus exclusively on cost reduction and short-term profitability and ignore many of the critical factors that determine long-term business success. The key to success, in today's global economy, is total customer satisfaction. To achieve this, companies must develop performance measures that drive employees to control processes that satisfy customer expectations. In particular, performance measures should provide process-level information that motivates employees to achieve the responsiveness and flexibility that companies require to compete on a global basis. Responsiveness is achieved by building relationships that lead to satisfied customers, suppliers and employees. Flexibility is achieved by reducing output variation in proceSfes; for example, the reduction of lead times and delays are both necessary for sustained competitive excellence and long-term profitability.

Bank Performance

Bank Performance PDF Author: Jacob Bikker
Publisher: Routledge
ISBN: 1134152507
Category : Business & Economics
Languages : en
Pages : 173

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Book Description
Economic literature pays a great deal of attention to the performance of banks, expressed in terms of competition, concentration, efficiency, productivity and profitability. This book provides an all-embracing framework for the various existing theories in this area and illustrates these theories with practical applications. Evaluating a broad field of research, the book describes a profit maximizing bank and demonstrates how several widely-used models can be fitted into this framework. The authors also present an overview of the current major trends in banking and relate them to the assumptions of each model, thereby shedding light on the relevance, timeliness and shelf life of the various models. The results include a set of recommendations for a future research agenda. Offering a comprehensive analysis of bank performance, this book is useful for all of those undertaking research, or are interested, in areas such as banking, competition, supervision, monetary policy and financial stability.

The Bank Credit Analysis Handbook

The Bank Credit Analysis Handbook PDF Author: Jonathan Golin
Publisher: John Wiley & Sons
ISBN: 0470829443
Category : Business & Economics
Languages : en
Pages : 748

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Book Description
A hands-on guide to the theory and practice of bank credit analysis and ratings In this revised edition, Jonathan Golin and Philippe Delhaise expand on the role of bank credit analysts and the methodology of their practice. Offering investors and practitioners an insider's perspective on how rating agencies assign all-important credit ratings to banks, the book is updated to reflect today's environment of increased oversight and demands for greater transparency. It includes international case studies of bank credit analysis, suggestions and insights for understanding and complying with the Basel Accords, techniques for reviewing asset quality on both quantitative and qualitative bases, explores the restructuring of distressed banks, and much more. Features charts, graphs, and spreadsheet illustrations to further explain topics discussed in the text Includes international case studies from North America, Asia, and Europe that offer readers a global perspective Offers coverage of the Basel Accords on Capital Adequacy and Liquidity and shares the authors' view that a bank could be compliant under those and other regulations without being creditworthy A uniquely practical guide to bank credit analysis as it is currently practiced around the world, The Bank Credit Analysis Handbook, Second Edition is a must-have resource for equity analysts, credit analysts, and bankers, as well as wealth managers and investors.