BUS442 – Reading Material

Board Photos

  1. CAMEL_OS Risks jpg
  2. Foreign Exchange Position Strategies jpg
  3. Foreign Exchange Risk jpg
  4. Interest Bearing Liabilities jpg
  5. Investment Bank Income Sources jpg
  6. Relationship Between Balance Sheet & Income Statement of a Commercial Bank jpg
  7. Shareholder’s Equity & Interest Earning Assets jpg
  8. Interesr Rate Risks jpg
  9. Duration Calculation table .jpg
  10. Loan Risks .jpg
  11. Loan Types .jpg
  12. Off Balance Sheet Risks .jpg
  13. Types of Loan Concentration .jpg
  14. Types of Banks .jpg
  15. Share Holder’s Equity Captions .jpg
  16. Relationship Between Bank Balance Sheet & Bank Income Statement .jpg
  17. Liquidity Risks .jpg
  18. On Balance Sheet Off Balance Sheet Concepts .jpg
  19. Derivatives List .jpg
  20. How to use Credit Cars .jpg
  21. Loan Rating, Credit Rating .jpg
  22. Credit Card System .jpg
  23. Payment Systems .jpg
  24. Payment & Credit Card Systems .jpg
  25. Distribution Channels of Banks .jpg
  26. Loan Approval Committees LAC .jpg
  27. Basel I-II-III .jpg
  28. Bank Balance Sheet & Income Statement Relationship.jpg
  29. Non Financial Institutions .jpg
  30. Financial Institutions .jpg
  31. Types of Banks .jpg
  32. Bank Circle .jpg
  33. On & Off Balance Sheet Liabilities .jpg
  34. ALCO Decisions .jpg
  35. Non Performing Loans Default Process .jpg
  36. Liquidity Management Definition for Banks .jpg
  37. Plastic Card Business in Banks .jpg
  38. 3 Types of Payment Systems  .jpg
  39. Share Holders Equity and Loss relationship in Banks .jpg
  40. Off Balance Sheet Risks  .jpg
  41. Excessive growth of Loan Portfolio of Banks brings many Risks .jpeg
  42. 6 “C” Test to reduce Loan Default Risk .jpeg
  43. Summary Bank Balance Sheet & Income Statement .pdf
  44. ApplePAY Operating Chart Diagram .pdf
  45. Plastic Card Business Players .jpg
  46. Three Bank Revenue Sources   .jpg
  47. Sosurces of Bank Income  .lpeg .
  48. Number of Payment Cards Worldwide 2016 .jpg 
  49. Loan Process (Loan Life Cycle) .jpeg 
  50. Loan Default Process .jpeg
  51. LIBOR Interest Rates .jpg
  52. ROA Return on Asset Dupont Analysis .jpg
  53. Loan Types Schedule .jpg
  54. Banking Law Restrictions .jpeg
  55. Liquidty Risks .pdf 
  56. Issuing Bank & Acquiring Bank ,jpg  
  57. Pay Before, Pay Now & Pay Later systems .jpeg
  58. Banking Terminology Dictionary .xlxs 
  59. Letter of Guarantee Types, Temporary L/G, Advance L/G, Performance L/G .jpeg

Banking and Financial Structure

Project Paper Sample Ratios

Ratio analysis for Banks Formulated by: Bulent Senver
Bülent Şenver
I. Earnings and Efficiency Profitability Ratios
Return on Asset (ROA)
Net Income / Total Average Assets
Return on Equity (ROE)
Net Income / Total Average Share Holders Equity
Income Expense Ratio
Total Income / Total Expense
Avarage Return of Interest Earning Assets
Total Interest Income / Total Average Interest Earning Assets
Avarage Cost of Funds
Total Interest Expense / Total Average Interest Bearing Liablities
Ratio of Non Interest Income to Non Interest Expense
Non Interest Income / Non Interest Expense
Break-Even Ratio
(Total Expenses – Non Interest Income) / Total Average Interest Earning Assets
Ratio of Net Interest Income to Avarage Total Assets
Net Interest Income / Total Average Assets
Ratio of Total Operating Expenses to Total Income
(Total Operating Expense / Total Operating Income)
Ratio of Interest Expense to Interest Income
Interest Expense / Interest Income
Percantage of Non-Interest Income in Total Income
(Non-Interest Income / Total Income)
Operating Expenses required to Manage Assets
(Operating Expense / Total Average Assets)
Interest Profitability of Interest Earning Assets
Net Interest Income / Average Total Interest Earning Assets
Average Return on Loans
(Interest Income on Loans / Average Total Loans)
Efficiency Ratios
Non Interest Expense /( Interest Income – Interest Expense + Non Interest Income)
Net Free Funds Ratio
(Non Interest Bearing Liabilities – Non Interest Earning Assets / Average Interest Earning Assets)
Interest Rate Sensitivity Gap
Interest Rate Sensitive Assets ( minus ) Interest Rate Sensitive Liabilities
Interest Rate Sensitivity Gap Ratio :
Interest Rate Sensitive Assets / Interest Rate Sensitive Liabilities
II. Capital Adequacy Ratios
Financial Leverage
Total Assets / Total Share Holders Equity
Ratio of Non-Interest Investments financed by SHEQ
(Equity Participations + Fixed Assets) / SHEQ
The Ratio of Foreign Exchange Position to SHEQ
(Foreign Currecy Assets – Foreign Currency Liabilities) / SHEQ
Ratio of SHEQ to Total Risks
SHEQ / (Total Assets+Total Contingent Liabilities and Commitments)
Ratio of Net Free-Funds to Total Assets
(SHEQ-(Equity Participations+Fixed Assets)) / Total Assets
Ratio of SHEQ as a Percantage of Total Assets
SHEQ / Total Assets
Ratio of SHEQ to Risk Weighted Assets and
Contingent Liabilites and Commitments
SHEQ / (Risk Weighted Assets + Risk Weighted Contingent Liabilites and Commitments)
Debt to Equity Ratio
Total Debt / SHEQ
Capital Formation Rate
(Net Income – Dividends to be paid) / Average SHEQ
III. Liquidity Ratios
Deposit to Loan Ratio
Total Loans / Total Deposits
Liquid Assets as a percentage of Deposits and Borrowings
Liquid Assets / (Total Deposits + Total Borrowings)
Ratio of Foreign Currency Assets to Foreign Currency Liabilities
Foreign Currency Assets / Foreign Currency Liabilities
Percentage of Liquid Assets in Total Assets
Foreign Currency Assets / Foreign Currency Liabilities
Liquidity Position for a Specific Period
(Assets Due for a specific Period / Liabilities Due for the same Period)
Volatile Deposits Ratio
Large Volatile Deposits / Total Deposits
Percentage of Interest Earning Assets Funded by Core Assets
Core Deposits / Interest Earning Assets
IV. Asset Quality Ratios
Percentage of Loans in Total Assets
Total Loans / Total Assets
Ratio of Interest Earning Assets to Total Assets
Interest Earning Assets / Total Assets
Ratio of Contingent Liabilites and Commitments
Total Contingent Liabilites and Commitments / Total Assets
Percentage of Non-Performing Loans in Total Loans
Non-Performing / Total Loans
Non-Performing Loan Reserve Ratio
Specific Loan Reserves / Non-Performing Loans
Ratio of Non-Interest Earning Assets in Total Assets
(Equity Participations+Fixed Assets+Other Non-Interest Earning Assets) / Total Assets
Interest Earning Assets Funded by Net Free Funds
(Non Interest Bearing Liabilities-Non Interest Earning Assets) / Interest Earning Assets
Ratio of Loan Losses Expense to Total Loans
Non Performing Loans Provision expense / Average Loans
Percentage of Loans Written off
Net Charge-Offs / Average Loans
Ratio of Non-Interest Earning Assets to Total Assets
Non-Interest Earning Assets / Total Assets
Loan Concentration Risk Ratio
Total Big Loans / Total Loans
V. Off Balance Sheet Ratios
Contingent Liabilites to Loans Ratio
Total Contingent Liabilities & Commitments / Total Loans
Contingent Liabilites to Assets Ratio
Total Contingent Liabilites & Commitments/ Total Assets
Return on Contingent Liabilites
Commission Income on Contingent Liabilites & Commitments / Average Contingent Liabilites & Commitments

Operations Management in Banking