O'Reilly logo

Asset and Liability Management: The Banker’s Guide to Value Creation and Risk Control, Second Edition by Youssef F. Bissada, Jean Dermine

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

The case of deposits

We shall first compute the profitability on the term deposits of $300 million collected from the public. Straight accounting leads to:

To be able to compute the profitability of term deposits, we need to specify the relevant revenue that should be attributed to the term deposits.

Consider the following question: e-Bank has collected in total $300 million in term deposits. What would the bank do if it collected $330 million instead of $300 million, or if it only collected $270 million instead of $300 million?

Therefore, the ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required