Question: Use the data table below for banks in the two asset size groups (a) $100 million-$1 billion and (b) more than $10 billion to answer


Use the data table below for banks in the two asset size groups (a) $100 million-\$1 billion and (b) more than $10 billion to answer the following questions. Data Table: ROA and ROE of Banks by Size, 1990-2018 Why were ROA and ROE strong for both groups over the 1990-2006 period? Why did ROA and ROE decrease over the period 2007-2009? Why did ROA and ROE increase over the period 2010-2018? Identify and discuss the primary variables that affect ROA and ROE as they relate to these two size groups. Why is ROA for the smaller banks generally larger than ROA for the large banks? Why is the ratio for ROE consistently larger for the large bank group? Using the information on ROE decomposition in Appendix 2A of your textbook 1, calculate the ratio of equity to total assets for each of the two bank groups for the period 1990-2018. Why has there been such dramatic change in the values over this time-period and why is there a difference in the size of the ratio for the two groups? Use the data table below for banks in the two asset size groups (a) $100 million-\$1 billion and (b) more than $10 billion to answer the following questions. Data Table: ROA and ROE of Banks by Size, 1990-2018 Why were ROA and ROE strong for both groups over the 1990-2006 period? Why did ROA and ROE decrease over the period 2007-2009? Why did ROA and ROE increase over the period 2010-2018? Identify and discuss the primary variables that affect ROA and ROE as they relate to these two size groups. Why is ROA for the smaller banks generally larger than ROA for the large banks? Why is the ratio for ROE consistently larger for the large bank group? Using the information on ROE decomposition in Appendix 2A of your textbook 1, calculate the ratio of equity to total assets for each of the two bank groups for the period 1990-2018. Why has there been such dramatic change in the values over this time-period and why is there a difference in the size of the ratio for the two groups
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