Bank Models?
What type of models do ER Bank Analysts generally use? Operating models? Would anyone be able to send me an example of a bank operating model?
Thanks in advance.
What type of models do ER Bank Analysts generally use? Operating models? Would anyone be able to send me an example of a bank operating model?
Thanks in advance.
Career Resources
Yes operating models. You project out net income as a sum of the various components net interest income, fee income, etc, then look at how much of that you need to retain based on how your RWAs change and what you need to do to maintain a certain tier 1, that get's you your dividend, you NPV those, done. Have only got a few really large models and can't strip out all the case-specific things now, but hopefully someone else can share.
Thanks for the response, how do you grow your drivers/components? I.e would you just apply a 5% growth rate to your interest earning assets etc or do you actually model out loan originations, pre-payment etc etc?
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