Monday, August 3, 2009

Why are the debt to equity ratios so high for banks compared to other companies generally?

For example, the net gearing ratio (debt-to-equity) for banks like ANZ or NAB are in the high numbers (1000 something %). Why is this? How does this high ratio indicate how the bank is performing financially compared to other companies within the industry or to other companies generally?

Why are the debt to equity ratios so high for banks compared to other companies generally?
yes off course


it is financial leverage


and com.maintane it very much.


thanks




ginkgo

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