Homework Help is Here – Start Your Trial Now!
Business
Accounting
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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

6

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
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
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting for Notes
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS