Obtain financial statements of two banks (many are online). Calculate the following ratios: Borrowed funds to total assets Core deposits to total assets Loans to deposits Commitments to lend to total...

For the present case study we have chosen Bank of America and Deutsche Bank as the
subject matter of study. Analysis of the various ratios gives the following insights about both the
banks:
Solvency analysis
Borrowed funds to total asset ratio for both the banks is very high this shows that banks
has borrowed huge funds for their operations, such high level of debt in the capital structure is
not good for the financial health of the company.
An organization should always maintain a balance between the debt and equity, best way
to assess whether a company is carrying more debt or not is to analyze its financial ratios.
Financial ratios will help to analyze whether a company is overburdened by the debt or not.
Solvency ratios are helpful in analyzing the long term solvency position of the company
such as borrowed funds to total assets, debt equity ratio etc. solvency ratios help in determining
the ability of the business to meet its short term as...