Episode 378: Four principles executives should use when making capital decisions
This episode examines an article from Bank Director titled “The cost of flawed capital decisions.” Banks use various metrics to evaluate a transaction. Some of these can include IRR, TBV, and EPS. Do these metrics tell the whole story? The authors lay out 4 foundational principles that bank executives should use when allocating capital. How banks utilize capital is critical to the overall financial performance of the bank. Bad decisions can be costly. A link to the article is included below. Link: The Cost of Flawed Capital Decisions | Bank Director
The skinny
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