Parliamentary Commission on Banking Standards and Rate of return: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Kmacharla@treasurers.org
No edit summary
 
imported>Doug Williamson
(Expand the page for different annual bases of quoting rates.)
 
Line 1: Line 1:
(PCBS).
The investor's return on an investment, expressed as a proportion of the amount invested.


Most commonly expressed as a percentage.


The Parliamentary Commission on Banking Standards was established by the UK Parliament in 2012 to:


'''A.'''
<span style="color:#4B0082">'''Example'''</span>


Consider and report on:
GBP 1 million is invested.


1. Professional standards and culture in the UK banking sector, taking account of regulatory and competition investigations into the LIBOR rate-setting scandal.
GBP 1.03 million is repayable at the end of the period.  


2. Lessons to be learned about:


2.1. Corporate governance.
The rate of return per period (r) is:


2.2. Transparency.
r = (End amount / Start amount) - 1


2.3. Conflicts of interest.


2.4. Their implications for regulation and for UK Government policy.
''Which can also be expressed as:''


r = (End / Start) - 1


'''B.'''
''or''


Make recommendations for legislative and other action.
r = <math>\frac{End}{Start}</math> - 1


The Commission's 2013 report proposes:


(1) Making the individual responsibility of senior bankers a reality.
= <math>\frac{1.03}{1}</math> - 1


(2) Reinforcing each bank's own responsibility for its own soundness and the maintenance of its standards.
= 0.0300


(3) Creating better functioning and more diverse banking markets.
= '''3.00%''' per period


(4) Reinforcing regulators's responsibility to exercise judgement in deploying their powers.


(5) Specifying the responsibilities of the UK Government.
=== Basis of quoting rates of return ===


The rate of return in the example above has been calculated and stated on a periodic basis.


The Commission's report setting out its conclusions and recommendations can be downloaded here:
Rates of return are often also quoted on an annual basis, following the conventional quoting convention for the market in which the proposed deal is being quoted.
{{filepath:PCBS report June 2013.pdf ‎ PCBS final report June 2013}}




==External links==
== See also ==
*[http://www.parliament.uk/bankingstandards UK Parliament: PCBS]
* [[Conventional year]]
* [[Effective annual rate]]
* [[Nominal annual rate]]
* [[Periodic]]
* [[Periodic rate]]
* [[Real return]]
* [[Return]]
* [[Yield]]


[[Category:Regulation_and_Law]]
[[Category:Corporate_finance]]
[[Category:Control_and_Reporting]]
[[Category:Policy_and_Objectives]]
[[Category:The_Treasury_Professional]]

Revision as of 17:01, 19 November 2015

The investor's return on an investment, expressed as a proportion of the amount invested.

Most commonly expressed as a percentage.


Example

GBP 1 million is invested.

GBP 1.03 million is repayable at the end of the period.


The rate of return per period (r) is:

r = (End amount / Start amount) - 1


Which can also be expressed as:

r = (End / Start) - 1

or

r = <math>\frac{End}{Start}</math> - 1


= <math>\frac{1.03}{1}</math> - 1

= 0.0300

= 3.00% per period


Basis of quoting rates of return

The rate of return in the example above has been calculated and stated on a periodic basis.

Rates of return are often also quoted on an annual basis, following the conventional quoting convention for the market in which the proposed deal is being quoted.


See also

Retrieved from ‘https://wiki.treasurers.org/w/index.php?title=Parliamentary_Commission_on_Banking_Standards&oldid=39967’