Increased Its Equity In Comparison Overall â€Myassignmenthelp.Com

Question: Discuss About The Increased Its Equity In Comparison Overall? Answer: Introducation From the asset quality ratios, it has been found that the asset quality ratios of the bank have increased over the years. However, the loan loss has increased, as some of the customers have failed to repay the loans within the stipulated time (Scholes, 2015).On the other hand, capital ratios of the bank have increased over the years, which denote that Bangkok Bank has increased its equity base in comparison to the overall assets. The possible reason might be the generation of additional funds from the investors in the market of Thailand Management (Law Singh, 2014). Along with this, the profit margin of the bank has declined over the years, as it has incurred too much on operating expenses. Moreover, the non-repayment of loans on the part of few customers of the bank has resulted in lower profit level. The liquidity ratio of the bank has been declining, as it has not been able to discharge its existing liabilities with the help of the available short-term asset base. Finally, the solvency ratio of the bank denotes that the bank has improved its capital structure by drawing additional funds through equity shares. References: Law, S. H., Singh, N. (2014). Does too much finance harm economic growth?.Journal of Banking Finance,41, 36-44. References: Scholes, M. S. (2015).Taxes and business strategy. Prentice Hall