Analysis of banks: why? Financial reporting is the activity that provides pertinent information for making important business decisions. The role of financial reporting for banks is crucial importance for the efficiency of banks' operations. Data needed for adequate financial reporting are found in the financial statements. In recent years, there has been a growing need for calculating performance of banks by using the information from the financial report. Importance of a specific analysis for banks:
on the direct links between the balance sheets of financial institutions. The default of one financial institution on its obligations leads to losses on the balance sheets of other financial institutions, which may lead to further defaults, and so on. This type of contagion is often referred as “domino” contagion or cascade bank failures. A key assumption common to these models is that the price of the assets that financial institutions have in their balance sheets is fixed. However, a model assuming
About Punjab National Bank Punjab National Bank (PNB) was established in 1894 and is the second largest government owned and over all fourth largest bank in India. It has about 5100 branches across 764 cities and serves over 63 million customers. It has presence throughout the length and breadth of the country and offers a wide variety of banking services that include corporate and personal banking, industrial finance, agricultural finance, financing of trade and international banking. Among the
This spillover sometimes negative and sometimes positive depending on bank activity type. The additional key finding was the balance sheet condition and bank’s business model is a predictor of the intensity of policy related spillover. Bengui & Bianchi (2014) analyse and create an optimal model of capital flow management for the case where we accept capital
2.1 Ratio Analysis The term ratio refers to one number conveyed in terms of another. The Ratio is a mathematical appearance of the liaison between two or more related numbers. Ratio Analysis, of all the tools of financial analysis available with a financial analyst the most vital and the most widely used tool is ratio analysis. Merely specified that ratio analysis is an analysis of financial statements done through the ratios. The analysis and interpretation done on the basis of the
Background and Purpose Nowadays the banking industry experienced rapid development. And its proof by the new banks were established in the lasts 15 years, and it will be created a competitive in banking industry. Industry Indonesian banks are faced with various challenges due to the slowdown economy and tightening liquidity limiting capacity growth credit and led to increased NPI banking sector. Bank is an intermediary that can encourage progress development through credit facilities and the easiness of
significant points to be measured in this analysis are: a) The effect of inflation on value of the currency needs to be considered as absolute changes without accounting for real price changes may not accurate results. b) It involves only horizontal comparisons. Comparative statements pay no attention to the interrelationship
financial transactions”, which includes summaries, analysis and reports of financial information, which includes assets and liabilities and profits and loss for a giving
Financial Analysis of Deutsche Bank 2.1. Specification of the Purpose of the Analysis The purpose of this analysis is to assist interested stakeholders to make sound decision-making on investment, objectives and overall strategies with regard to the financial analysis. The data presented in this report even though is past may assist stakeholders to distinguish the operational strengths and weaknesses of the Bank as well as its financial soundness. 2.2 The Interested Stakeholders of the Analysis Report
The Constitution of the Board of the Bank is governed by “The Nationalized Banks (Management and Miscellaneous Provisions) Scheme, 1970, formulated by the Central Government, after consultation with the Reserve Bank of India, in exercise of the powers conferred by section 9 of “The Banking Companies (Acquisition and Transfer of Undertakings) Ac, t 1970”. In terms of The Banking Companies (Acquisition and Transfer of Undertakings Act 1970, the General Superintendence, Direction and Management of the