The financial statements of a bank company are unlike those of any other organisation. Below are 5 key things to look for when confronted with the accounts of a bank.
Key learning objectives:
Identifying whether you are looking at the accounts of a commercial or investment bank
Ensuring that the costs are under control
Understand the importance of capital adequacy checks
Identifying the source of funds
Ensuring there is an adequate provision for ‘non-performing loans’
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