Bank Performance Analysis: ROA, ROE, and How to Evaluate Banks
Book: Financial Markets and Institutions, 11th Edition Author: Jeff Madura Publisher: Cengage Learning, 2015 ISBN: 978-1-133-94788-2
Chapter 20 wraps up the commercial banking section by asking a simple question: how do you know if a bank is doing well? Regulators need to spot problems early. Shareholders need to know if their investment is paying off. And bank managers need feedback on whether their strategies are working.