Credit Risk Management: Risk Reward (Part 1)
Interactive

Credit Risk Management: Risk Reward (Part 1)

Intuition Publishing
Updated Sep 25, 2020

Banks are in business in order to generate returns for their stakeholders. To achieve this, they must take risks and embed them in the products and services they provide. Here we look at the various sources of revenue for banks, before describing in detail the calculations for relationship earnings, risk-adjusted earnings, and return on capital employed (ROCE).