As a shareholder of a bank, which ratio would you be more concerned about and wh

Question

As a shareholder of a bank, which ratio would you be more concerned about and why? Now imagine that you're a depositor in a world where FDIC insurance doesn't exist...meaning you can lose your money if the bank fails. Which ratio do you care most about, and why? As regulators, which ratio do you think FDIC bank examiners focus on most? How does having more or less capital affect these ratios?

* ROAA is calculated as: net income divided by average total assets. ROAE is calculated as: net income divided by average equity capital.

Explanation / Answer

ANSWERS:

As a shareholder of a bank i would be concerned with

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