What Should Be the Impact on a Bank's Return on Assets

question 57

Essay

What should be the impact on a bank's return on assets and return on equity from increased use of off-balance-sheet activities?

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Definitions:

Corporation Assets

The tangible and intangible assets owned by a corporation, including real estate, equipment, intellectual property, and financial investments.

Voluntary Assumption

The act of willingly taking on duties, responsibilities, or liabilities, often without coercion or obligation.

Risk

The possibility of loss or damage arising from a specific action or event.

Defence

Legal arguments and evidence presented to counter a claim or accusation in a court of law.