If a bank's return on equity remains constant, but the ratio of bank assets to bank capital decreases:

Name: If a bank's return on equity remains constant, but the ratio of bank assets to bank capital decreases:
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The return on equity (ROE) is calculated as Net Income/Shareholder's Equity. If the ROE remains constant while the ratio of assets to capital decreases, it means the bank is generating more income from its assets relative to its equity, indicating an increase in return on assets (ROA).

If a Bank's Return on Equity Remains Constant, but the Ratio