Question

are there significant differences in assets per employee in different classes of banks across the US? what hypotheses testing would test to answer the question. write the results and interpretations.

Answer 1

The Different classes of Bank are classified as Community Banks (CB) and Non-Community Banks (NCB). The Feasbility and the Sustainability features of the Banks in US are determined by the Ratio of Rate in which far Banks are spending towards Community Welfare without earning any extra Interest. So there was a huge gap of real efficiency tooks place in order to retaining the assets per employee between all difference classes of Banks. In order to increase the efficiency of Assets per employee many Different type of Banks like Capital Banks, Derivative Banks, Investment Banks are originated and concentrated in the Asset Maximization. When compared to the Assets of the Traditional CB and NCB, the Assets of Investment, Capital and Derivative Banks are rose to several level by catering the needs of Investors, Business and Share Traders who want to earn interest through their Procured Assets.

As already we know that US Economy is the Developed Economy. Day by Day booming of Investors increases in the Stock Exchange Market and the Responsibility of Safeguarding the Assets of the Customers lies with the Mutual Fund Oriented Banking as well as Captive, Investment and Derivative Market Operations. For example CBs are not able to show the efficiency of procuring the Net Value of Asset beyong $500 million in the Banking Operations.

Economies of Scale are used as the Hypotheses tool to discuss the differences of assets per employee was maintained across different type of Banks in the US.The Economies of Scale is refered as the parameter of calculating the output with the Average Cost of output in producing each Unit. In terms of Bank terminology the Lending activities and Earning Interest rates are only calculated with the Balance sheet provided by Each Bank every day in order to equalize the Assets and Liabilities. Here we can discuss the recruitment of large number of Employees in the CB to ensure the quality service to the Customers. So it is categorized as Non -Interest Expenses (Recruitment of Employees) for CB to run the banking business. But the increase in the Non-interest Expenses will lead to decline in the Outpout of Goods and Services. CB cannot able to capture more Assets beyond its capability. But by using the Proper mix of Economies of Scale, NCB can gain more Assets in the form of more Output of Goods and Services. This can be achieved only by cut-shorting the rate of Employee Assets working the NCB Bank.

We can conclude the discussion by giving results and interpretation in the form of providing example of adopting current trending activities in the Banks of US. As we already aware that US Economy is blended with both Mixed and Private Economy with Many innovative and Advanced Technology are used in all industries to Cut-short the Overhead cost and gaining the profits throughout the year. Such Innovative Techniques are used in Banking Technology. Many Commercial, Captive, Derivative and Investment Banks are using Robots (Ariticial Intelligence) in the operations of the Banks. It will reduce the Human Service and also Save more time in order to gain efficiency in the Banking Service. The use of Robots are collectively called as Automation. The Automation project plays a Key role in gradual reduction of Human Service. At last we can derive the conclusion that maintaining the Assets per Employee may differs with the degree of Automation used by all the Banks in their Operations.