The following information is based on a fictitious Canadian Bank (CB)and none of the numbers provided herein are real. CB assets total $46.1 billion, it has loans of $26 billion, and total deposits of $35.5 billion. It provides online, telephone, and traditional banking and investment services to both individuals and businesses in Canada and abroad. CB's mission is to create an exceptional customer experience by providing solutions through leading technologies, offering a wide selection of financial products and services, and leveraging experience to meet customers' needs. Which of the following measures is least likely to be included in the financial perspective of CB's balanced scorecard?
A)Prime rate
B)Total loans outstanding
C)Profit margin
D)Total demand deposits

Question

Quizplus · Accepted Answer

The financial perspective of CB's balanced scorecard is likely to include measures that directly impact the bank's financial performance, such as total loans outstanding, profit margin, and total demand deposits. However, the prime rate, which is the interest rate that banks charge their most creditworthy customers, is not a measure of CB's own financial performance, but rather an external benchmark that reflects the overall state of the economy. Therefore, it is least likely to be included in the bank's balanced scorecard.

The Following Information Is Based on a Fictitious Canadian Bank