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
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
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