Unless otherwise defined, the ratio of a bank’s administrative burden to its operating income. The ratio is considered an important indicator for assessing the efficiency (ratio of costs to performance) and productivity (ratio of factor input to performance) of a bank. – It should be emphasized that this ratio always relates to past or current conditions and therefore does not necessarily also say anything about the prospects of the institution in the future. – See expense, profit, return on equity, result, income.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/

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