Global Banking Operations and Strategy Essay Example | Topics and Well Written Essays - 1250 words

Global Banking Operations and Strategy - Essay typefaceThe following ratios are calculated to evaluate the capital adequacy of RBS (Refer to Appendix 1 for the calculation of ratios) (Bhayani, 2006)From the supra figure it is evident that the CAR of RBS has been fluctuating over the geezerhood. The highest CAR has been 15% (in 2008 and 2012). The capital resources of RBS comprise score 1 and Tier 2. Thus, it can be inferred that 15% of capital (Tiers) of RBS is needed for protecting its risk dull summations in 2012 (Hilbers, Krueger and Moretti, 2000).From the above figure it can analysed that the debt equity ratio of the wedge has decreased over the forms from 2008 to 2012. It can be noticed that RBS has been aggressive in 2008 regarding financing. However, the decrease in the debt equity ratio reflects the concomitant that RBS has become more conservative in financing its capital through debt (Grier, 2007).The asset quality is a vital factor for gauging the strength of a ba nk (Pastory and Mutaju, 2013). The main aim is to ensure the component of non- do asset as percentage of total asset (Refer to Appendix 2 for the calculation of ratios).The ratio gauges the efficiency of the bank for assessing its credit risk and debt recovery (Wagner and Knaup, 2008). NNPA refers to the loans that are about to become default once the borrower fails to make the kindle payment (Godlewski, 2003).From the above figure it is evident that the net performing asset has decreased over the year which means the numbers of customers who are not able to pay the interest have decreased. This reflects the fact that RBS has been performing well over the 5 years (Hoshi, Kashyap. and Scharfstein, 2009).From the above figure it is evident that the bank has concentrated in investing their assets over the years so that they can earn profitable return out of it. However, concord to the graph, the total investment has reduced over the years. The decrease in total assets may be predicte d as the increase in liabilities for