The article considers mechanisms to correctly evaluate efficiency of not only the bank as a whole, but also, more importantly – performance of each of its divisions. The author suggests using economic profit as the main indicator. For these purposes it should be distributed between the bank departments. There are a number of mechanisms for doing that: transfer pricing, allocation of indirect costs and allocation of equity capital.
Tel : +7 495 649 6241
Fax : +7 800 3331538
E-mail : bgscience@idbg.ru
Address : RUSSIA, 101000, Moscow, Myasnitskaya st. 13-2
BIBLIO-GLOBUS Science - one of the leading science publishers in Russia.
Read More