Project appraisal and Ring fenced bank: Difference between pages

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imported>Doug Williamson
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imported>Doug Williamson
(Link with Universal bank page.)
 
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1.
''Bank supervision''


The evaluation and selection of projects which are most likely to maximise shareholders' wealth, by the comparative analysis of their expected cashflows.
(RFB).


Following 'ring fencing' formerly universal banks will be separated into a 'ring fenced bank' (for the protection of retail customers) and a non ring fenced bank.


2.
The ring fenced bank will be lower-risk, and within the protective ring fence.  


Similar evaluation techniques taking account of additional factors and considerations - as well as the expected project cashflows - including for example the existence of real options.


==See also==
* [[Non ring fenced bank]]
* [[Ring fence]]
* [[Universal bank]]
* [[US Glass-Steagall]]


Also known as ''Project analysis.''


 
===Other links===
Note for both definitons above that ''projects'' are anything involving expenditures for which the benefits, or some of them, occur at a different time from that of the expenditure or some it.
[http://www.treasurers.org/node/9021 Electric shock, The Treasurer, May 2013]
 
As well as capital expenditure, included are, for example, acquisitions and disposals, marketing expenditure, advertising, staff training or buying a new coffee pot for a staff refreshment station.
 
It is only worthwile devoting time and effort in formal project appraisal for projects involving material expenditure.
 
 
== See also ==
* [[Real option]]
* [[Real options valuation]]
* [[Sunk costs]]
 
[[Category:Corporate_finance]]

Revision as of 07:47, 14 May 2017

Bank supervision

(RFB).

Following 'ring fencing' formerly universal banks will be separated into a 'ring fenced bank' (for the protection of retail customers) and a non ring fenced bank.

The ring fenced bank will be lower-risk, and within the protective ring fence.


See also


Other links

Electric shock, The Treasurer, May 2013