Economics · Banking System
The ROE (Return on Equity) for banks is a critical measure for shareholders. What is the primary focus of ROE as opposed to ROA (Return on Assets)?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1The ratio of a bank's net profit to its total income
- 2The return generated on the capital invested by the owners (shareholders)✓
- 3The bank's efficiency in controlling its operating expenses
- 4The bank's efficiency in using its total liabilities
Correct answer
The return generated on the capital invested by the owners (shareholders)
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