Bank Efficiency Ratio

Written by Jerry Ratzlaff on . Posted in Manufacturing Engineering

Bank efficiency ratio, abbreviated as ER, is how effectively the company is performing currently by using its internal resources.

 

bank efficiency ratio Formula

\(\large{ ER =  \frac{ E_{ni} }{ NII \;+\; I_{ni} \;-\; CL }  }\)   

Where:

\(\large{ ER }\) = bank efficiency ratio

\(\large{ NII }\) = net interest income

\(\large{ E_{ni} }\) = non-interest expense

\(\large{ I_{ni} }\) = non-interest income

\(\large{ CL }\) = provision for credit losses

 

Tags: Equations for Manufacturing