* These theories of banking attain a very special consequence in the political economy of banking * They position banks on the background of market conditions such as number of banks in the market, rest rates, information availability, financial self-direction to the institutions, transaction costs, and nature of their banking ope rations * providing knowledge into bank behavior ?net interest margin ? extension crunch ? credit rationin?securitization terminal involution MARGIN * comment * gain interest margin usually is the measure of how easy is a bank investment decision compared to its debt situation * a negative value shows that banks had had a bad investment decisions attest that interest expenses were much larger that investment returns, while a irrefutable value shows that banks had an optimal investment decisions gaining it profits and domineering returns for that period CALCULATIONS * Net interest margin (NIM) * Total ghostwriter Income - Total Interest Expense/average earning assets * banks has deposits of 100$ and pays 10$ interest on them and gain 20$ of interest or return of investment on them so 20-10/100=.10% NIM greatness OF NIM * NIM is usually mavin of the main aspects in evaluating the bank . * wariness system, ev aluating what is a good counseling and a ba! d one * positiveness of the bank. * optimal investment decisions by the bank * liquidness position to go over an efficient liquidity management and lowering liquidity ratio thus increasing NIM. DETERMINISTS OF NET INTEREST MARGIN (internatl factors) * Net interest spreads NIS which is the average difference between...If you want to get a full essay, order it on our website: OrderEssay.net
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