Question on running a banking analysis: There is increased equity investment into a bank that will hold this investment and will then lend out 10 times that amount of money for small business loans and mortgages. Exact scenario: There is a $100,000,000 investment into a California bank that in turn lends out $1,000,000,000 in loans and averages a 4% interest rate on these funds. The purpose of the study is to determine the increased job creation created int he banking industry. Is the input to the analysis the $1,000,000 that is invested into the bank, the $1,000,000,000 that the bank will lend out, or the $40,000,000 in annual interest that the bank will earn?
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