The Internal Assessment - Essay Example

The Internal Assessment: Bank of America The bank of America is a delivery corporation, a financial holding company, and a bank holding company. In the year 2013 the bank experienced an increase in its growth. The year amerced the bank’s fifth year of continuous recovery from its recent economic failures. The company has kept up with this trend in the year 2014. The employment gain of the corporation can be said to have been steady though moderate. However, the employment rate experienced a fall of 6.7%.The bank’s retail sales experienced a significant growth rate for a majority of the year 2013.

Service spending showed a modest rebound in the later parts of the year. The core inflation declined in the year 2013 to as low as almost full percentage point below the Board of Governors of Federal Reserve System’s long term target. The Board of Governors of Federal Reserve System’s long term target was at 2%. The bank also experienced an increase in US household net worth in the year 2013. There was an approximate growth of 12% in the home prices in the year 2013. However, signs of deceleration were seen in the final parts of the year.

The treasury yield also experienced a rise over the course of the year despite the speculations that the Federal Reserve would adjust their pace of purchasing mortgage backed securities.Despite the fact that there was a federal government shutdown in the month of October, there was very minimal impact on the performance of the economy of the United States of America. the federal reserve made an announcement that it will reduce its security purchases in the year 2014. However, they had no intentions of raising the federal fund rates unless the employment rate had reaches the 6.

5% threshold. Non-interest expense experienced a decrease from $2.9 billion to $69.2 billion. With relation to the project New BAC, which was first introduced during the third quarter of 2011, the bank continued to get cost saving in some noninterest expense categories (Adrien, Anderson, Garden, Lusthaus and Montalván 89). This helped them in the process of streamlining their workforce. The bank expects the total savings from this project to get to $12 billion by the year 2015. $1.5 billion per quarter of the same has already been realized by the year 2014.

The bank’s effective tax rate for 2013 was driven by their recurring tax preference items and by some tax benefits relating to non-U.S. operations, including additional tax benefits from the 2012 non- U.S. restructurings. These benefits were partially offset by the $1.1 billion impact of the U.K. 2013 Finance Act enacted on July17, 2013, which reduced the United Kingdom corporate income tax rate by 3% to 20%. 20% of the reduction will become effective April 1, 2014 and the additional 1% reduction on April 1, 2015.

Because our deferred tax assets in excess of a certain amount are not allowed in calculating regulatory capital, this charge did not impact our capital ratios. These are the factors to which the performance of the bank in the year 2013 can be attributed. Work citedAdrien, Marie-Hélène, Gary Anderson, Fred Garden, Charles Lusthaus, and George P. Montalván. Organizational Assessment: A Framework for Improving Performance. Washington, DC [u.a., 2013. Print.