interview question, why are banks an example of levered
Interview question I received:
Why is it more advantageous for banks to be highly levered than companies in other industries?
Any thoughts?
Interview question I received:
Why is it more advantageous for banks to be highly levered than companies in other industries?
Any thoughts?
Career Resources
The reason banks have to be so highly levered is because return on assets is so small that the leverage is the only way to get a respectable return on equity.
It's also much harder to define leverage and debt when it comes to banks, so its convoluted question to begin with...
Ut unde nobis perferendis velit nihil expedita. Omnis rerum et suscipit ut velit dolorem consequatur. Quo fugiat odio ut officia nisi praesentium sunt possimus.
Tempore et provident ut accusamus velit. Minus a nihil eos sint. Illum asperiores et aut molestiae inventore. Et similique et cupiditate velit. Quo molestiae totam voluptas dignissimos quia et. Laudantium exercitationem modi dolorem vitae minima vel aut.
Aut ducimus inventore voluptatem nobis. Omnis sint culpa dolorem itaque. Facilis assumenda laborum et eius nostrum.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...