7. Evaluation of a banks return on assets (ROA)

Which of the following factors influencing a banks income statements are not controlled by the bank? Check all that apply.

Market interest rate movements

Regulatory provisions

Composition of liabilities

Capital structure regulations

Composition of assets

Complete the following statement about a possible reason for a low return on assets (ROA).

High interest expenses and/or relatively interest revenues the net interest margin, thereby ROA.