BANK EFFICIENCY (Indicators)

instance efficiency indicators

instance efficiency indicators

In today’s world there are indicators for the evaluation of the quality of the bank, both the financial institution and its employees, a list of which is annexed hereto.

The indicators are used to assess the effectiveness of the financial organization and management decisions. Before making any decisions of the Management Board or the Supervisory Board considers the balance sheet for the cognition of the volume of available resources and responsibilities of the organization before or others, it is a limited source for proper decision-making in order to obtain benefits in the future of the organization.

On this basis, developed in a number of indicators, which economists call “factor”. Each factor has its specified level indicating the percentage, or other indicators.

List of quality indicators

FOR EVALUATION the Bank’s activities

  1. Return on assets (ROA) – net profit / average amount Assets
  2. Return on equity (ROE) – net profit / average capital amount
  3. Profitability – Net income / Total expenditure
  4. Ratio (CIR) – Calculation formula: Operating expenses / net operating income
  5. Liquidity (the presence of redundancy or high risk of insolvency) Formula – Liquid assets / Demand deposits * 100%
  6. The yield of the loan portfolio – Interest income / Average gross loan portfolio
  7. The level of non-performing loans, as a total and quantitatively – Outstanding loans / Average gross loan portfolio.
  8. The level of classified loans as a total and quantitatively by Category (Non-standard, Doubtful, Dangerous, Hopeless), with an indication of trends.
  9. The load of each loan officer for a loan in a month – The amount of loans issued in the month / number of loan officers. Or the number of loans per month / number of loan officers.
  10. The average yield of bank employees per month – Total income / Average number of employees in the past month.
  11. The growth of the main indicators (assets, loans, deposits, remittances, credit cards, cash management, Dealing, exchange offices), both in total and quantitatively.
  12. The costs of each bank employee – Total expenses / average number of employees during the reporting period.
  13. Ratio performance of the plan receiving the net profit in% of the budget (by branches and in total for the bank).
  14. The effectiveness of bank products (their margin in% and volume in the total value).
  15. The average profitability of the bank’s employees – net profit / average number of employees.
  16. Margin – the difference between the cost of resources involved and the proposed
  17. Real earnings and profitability:
    1. Net income, adjusted for inflation,
    2. Net profit, taking into account not incurred expenses (ie not paid for by the contract or the funds)
    3. Net profit, taking into account exchange rate changes. Some banks suffer from fluctuations or benefit without any management effort.

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