Title: Assessing bank performance and determining strategy

Authors: Emmanuel N. Roussakis

Addresses: College of Business, RB 210, Florida International University, Miami, FL 33199, USA

Abstract: This case study offers insights into the assessment of bank performance and the determination of strategies to attain defined objectives (operational and ultimate). It reviews the fundamental analytical tools and defines their relative importance as measures of performance and strategy implementation. To validate the relationship between performance assessment and strategy implementation, the study focuses on a South Florida-based bank in the post 2008 crisis period. The bank's profile and accompanying financial statements provide the analyst with the necessary information to assess its performance and make a recommendation as to the proposed course of action. The pedagogical objective of the case is to expose the analyst to the challenges confronting the bank and the various strategic options available to management.

Keywords: shareholder wealth maximisation; financial ratios; ratio analysis; Federal Deposit Insurance Corporation; FDIC; loan portfolios; housing bubble; real estate crisis; credit underwriting standards; loan-to-value; LTV; bank performance; performance evaluation; strategy implementation; loan-loss reserves; case study; strategic options; banking industry; USA; United States.

DOI: 10.1504/JIBED.2016.077714

Journal for International Business and Entrepreneurship Development, 2016 Vol.9 No.2, pp.204 - 221

Received: 05 Nov 2015
Accepted: 05 Nov 2015

Published online: 13 Jul 2016 *

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