Calculate the initial deposit insurance assessment rate for each institution. (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.161)) Initial assessment rate Institution 1 Institution 2
Calculate the initial deposit insurance assessment rate for each institution. (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.161)) Initial assessment rate Institution 1 Institution 2
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
6

Transcribed Image Text:Two depository institutions have composite CAMELS ratings of 1 or 2 and are well capitalized.' Thus, each
institution falls into the FDIC Risk Category I deposit insurance assessment scheme. Further, the
institutions have the following financial ratios and CAMELS ratings: Use Table
Tier I leverage ratio (%)
Loans past due 30-89 days/gross assets (%)
Nonperforming assets/gross assets (%)
Net loan charge-offs/gross assets (%)
Net income before taxes/risk-weighted assets (%)
Adjusted brokered deposits ratio (%)
CAMELS components:
CAMELS
Uniform Amount
Tier I leverage ratio (%)
Loans past due 30-89 days/gross assets (%)
Nonperforming assets/gross assets (%)
Net loan charge-offs/gross assets (%)
Net income before taxes/risk-weighted assets (%)
Adjusted brokered deposits ratio (%)
Weighted average CAMELS component ratings
Initial assessment rate
Institution 1
Institution Institution 2
1
8.79
References eBook &Resources
0.62
0.52
0.45
2.32
0.00
1
1
3
1
1
7.92
0.73
0.67
0.49
Institution 2
2.03
15.73
Calculate the initial deposit insurance assessment rate for each institution. (Do not round intermediate
calculations. Round your answers to 2 decimal places. (e.g., 32.161))
321313
Pricing Multiplier
4.861
(0.056)
0.575
1.074
1.210
(0.764)
0.065
1.095
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