EVA® in Theory and Practice Some General Observations from the Banking Industry
نویسنده
چکیده
Models of risk-adjusted or economic return have become considerably more important in the banking industry as the industry has become less regulated. These models range from traditional funds transfer pricing (FTP) models to more sophisticated models of economic value added (EVA). Although grounded in basic principles of economics, these models can be quite complex in practice. In this paper, we examine some general economic and managerial issues that arise in the application of FTP and EVA models based on the authors experience in the implementation of these models in the banking industry.
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