Pricing and Return on Equity

T. H. Donaldson
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T. H. Donaldson: J. P. Morgan

Chapter 18 in Credit Control in Boom and Recession, 1994, pp 231-241 from Palgrave Macmillan

Abstract: Abstract To price facilities correctly, banks need three types of information: their target return on equity; what capital each facility uses, to calculate that return; and for products other than loans, what loan equivalent to use to allocate capital on a comparable basis. Before going into these, however, we need to see some reasons why accurate pricing is necessary.

Keywords: Credit Risk; Capital Requirement; Unexpected Loss; Early Chapter; Central Bank Governor (search for similar items in EconPapers)
Date: 1994
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-39024-9_18

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DOI: 10.1057/9780230390249_18

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