Question

how does a bank improve its overall performance?

Answer 1

Answer-

The bank can improve it's overall performance by

1) Maintaining Tier 1 and Tier 2 capital ratios as implemented by regulators
2) Maintaining Capital Adequacy ratio = Capital / risk
3) Doing proper due diligence while lending loans that involves risk.
4) Maintaining good relations with customers and depositors and paying the interests in time without fail.
5) Keeping a check on the Non performing assets and Bad loans which should not exceed the stipulated perentange.
6) Maintaining good ratios like liquidity, profitability and solvency ratios.
7) Maintain and follow ethical practices in every country that the bank operates and follow regulations of the respetive country.
8) Disbursing loans for the purposes based on priority basis with low interest rates.