Very large banks often have on average a lower ROA and lower NIM, but have a higher EM than smaller banks. Very large banks also tend to have a higher NIR%, but lower % of core deposit financing than smaller banks.

Question

Quizplus · Accepted Answer

This is generally true due to the economies of scale that very large banks can achieve. However, there may be exceptions to this trend depending on the specific operations and strategies of each bank.

Very Large Banks Often Have on Average a Lower ROA