Abstract
The sustainable growth rate of a bank is the maximum annual rate of increase in total assets that can be supported by internally generated equity capital. This rate of growth is determined by the return on assets, the retention rate and the equity multiplier of the bank. For illustrative purposes the sustainable growth rate model is applied on data from the National Bank of Greece.
Original language | English |
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Pages (from-to) | 20-26 |
Number of pages | 7 |
Journal | Managerial Finance |
Volume | 28 |
Issue number | 5 |
DOIs | |
Publication status | Published - 2002 |
Keywords
- Banking
- Financing
- Greece
- Growth
- Modelling
- Sustainable development