Provide a formulae on how would predict a banks market share for gross loans and advances...
Provide a formulae on how would predict a banks market share for gross loans and advances
Eg. Bank A has a market share of 15%($18bn) in 2018 , how do they achieve 16.5% in 2019.
The current credit extension growth rate is 5.4% for 2019.
Homework Answers
Bank A's Market Share in Gross Loans and Advances = 15% or ($ 18 B)
Current Credit Extension Growth Rate (Growth in Gross Loans and Advances) = 5.4 %
Gross Loans and Advances in 2018 = 18 / 0.15 = $ 120 B
Gross Loans and Advances in 2019 = 120 x 1.054 = $ 126.48 B
Target Market Share of Bank A = 16.5 %
Market Share of Bank A in 2019 = 0.165 x 126.48 = $ 20.8692 B ~ $ 20.87 B
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Provide a formulae on how would predict a banks market share for
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