Assume recently you have been appointed manager of ASB Bank. You took a course in commercial banking and you understand that a bank's performance will affect its valuation in the market, its ability to acquire other banks or to be acquired at a good price, and its ability to attract deposits and funds in the financial markets.

Explain what are some of the measures you can take to improve ASB bank performance competitively?

What financial ratios can you employ to evaluate ASB bank cost-efficiency and its liquidity position? 

How would you attempt to reach the appropriate trade-off between returns and risks?