Tag: Bank Performance Growth Efficiency Ratio

Why Banks Are Using The Growth Efficiency Ratio

Bank Growth Efficiency

As we have said in the past, you have to “buy” growth past the normal expansion in the marketplace. If your regional economy, as measured by production, is growing at 5%, then to achieve growth beyond that you need to “purchase” the incremental business with marketing dollars, sales effort, and risk. Growth doesn’t come free. We have taken this concept to the next level and utilize the “Growth Efficiency Ratio” in addition to the “Growth Efficiency Differential Ratio” for looking at potential M&A transactions.

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