It helps participants realize how each of their decisions affects profitability. Capital Adequacy - Discusses methods for monitoring and projecting capital requirements. Teams can then determine a proper asset mix, the type and amount of capital they need to raise, and the optimal level of dividends to pay. Bank Performance and Objectives - Shows how to manage the bank and set objectives using the traditional ROE model. Charting Interest Rates - Shows how to project interest rates.
Teams use the projections to formulate investment, lending, and funding strategies.
Teams can then determine the relative expenses and profit of any area of the bank. Economic Value Planning - shows how to measure performance and use economic value for strategic decisions.