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Canadian Imperial said earlier this year that it would cut capital allocated to corporate loans and merchant banking by one-third over the next three years.
Specifically, directors should carefully consider the capital allocated to repurchases relative to the company's realistic opportunities for value creation through internal development or external acquisitions.
Mr Casey asks: "Is the financial business going to have more capital allocated to it, or will they take capital out of it?
This we believe not only helps shed greater light on the sustainability of group dividend but illuminates the areas where the group still has large sums of capital allocated inefficiently.
Hodgkinson acknowledged there were still concerns about bad debt in the buy-to-let sector but that future losses were contained in the "buffer capital" allocated by the state in the latest bailout.
On average, client portfolios at some the largest private banks have 17 percent of their capital allocated to hedge funds, private equity and other alternative investments, compared with 7 percent at the end of 2009, according to a new study.
Similar(37)
Their primary role of raising capital, allocating resources efficiently and mitigating risk has been slowly but surely drowned out by a cacophony of frenetic speculation.
Even so, a more efficient international capital market is supposed to ensure that capital is allocated to the most productive use.
They govern how capital is allocated.
More importantly, CIOs can help boards address how capital is allocated for technology.
Treasury has been centralised, to ensure that capital is allocated more efficiently.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com