What is a good ROA for a small bank?
Could you please elaborate on what constitutes a satisfactory Return on Assets (ROA) for a small bank? Is there a specific benchmark or range that these institutions typically aim for, considering their unique financial position, risk appetite, and operational scale? How does this metric compare to that of larger financial institutions, and what factors influence its variability among small banks? Furthermore, are there any best practices or strategies that small banks can adopt to enhance their ROA performance?