Evaluating Bank performance -Problem OneBelow is the financial data for ORC British Bank, Answer Questions 1 to 1o:Amounts in pounds30.000,000.0o45,000,000.0078,000.000.00AccountsNet IncomeNon-interest IncomeNet Interest IncomeTotal Interest Expense61.000,000.00Gross Loans625,000.000.00Total Assets945.000.000.00Total LiabilitiesReserve For Loan LossesProvision For Loan Losses725,000.000.0095,000,000.0033,000,000.00"Untitled - NotepadFile Edit Format View HelpIf the loan ratio is 37%, net loans amount is: *a- 190,750, e00b- 179,223, 000C- 349,650, 000d- 162,253,100e- None of the above- Refer to question 6, if the Reserve for loan and lease losses is 3,450,000 pounds, then the amount of Unearned income reserves is:a- 132,000,000b- 271,900, e00C- 229,280,000d- 231,930,05ee- None of the above

The loan ratio, also known as the loan-to-assets ratio, measures the proportion of a bank's assets…

Evaluating Bank performance -Problem One Below is the financial data for ORC British Bank. Answer Questions 1 to 10: Accounts Net Income Non-interest Income Net Interest Income Total Interest Expense Gross Loans Amounts in pounds 30,000,000.00 45,000,000.00 78,000,000.00 61,000,000.00 625.000.000.00 Total Assets 945,000,000.00 Total Liabilities Reserve For Loan Losses 725,000,000.00 95,000,000.00 Provision For Loan Losses 33,000,000.00 "Untitled- Notepad File Edit Format View Help If the loan ratio is 37%, net loans amount is: * a- 190,750,000 b- 179,223,000 c- 349,650,000 d- 162,253,100 e- None of the above I

Evaluating Bank performance -Problem One Below is the financial data for ORC British Bank. Answer Questions 1 to 10: Accounts Net Income Non-interest Income Net Interest Income Total Interest Expense Gross Loans Amounts in pounds 30,000,000.00 45,000,000.00 78,000,000.00 61,000,000.00 625.000.000.00 Total Assets 945,000,000.00 Total Liabilities Reserve For Loan Losses 725,000,000.00 95,000,000.00 Provision For Loan Losses 33,000,000.00 "Untitled- Notepad File Edit Format View Help If the loan ratio is 37%, net loans amount is: * a- 190,750,000 b- 179,223,000 c- 349,650,000 d- 162,253,100 e- None of the above I

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.

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Given below is the balance sheet for the Bank of New Providence: Assets ($1,000,000s) Liabilities ($1,000,000s) Cash 52 Deposits 650 T-bills and Bonds 257 Long-term debt 326 Loans to Other Banks 95 Equity 88 Commercial Loans 364 Mortgages 296 Total 1,064 Total 1,064 The net profit for the bank was $10.3 million. A required reserve is specified at 5% of deposits. What is the Bank's EM?
Am. 396.
The table shows the balance sheet of a banking system (aggregated over all banks) The desired reserve ratio on all deposits is 5 percent. There is no currency drain Assets Liabilities (millions of dollars) What is the quantity of loans and the quantity of total deposits when the banks have no excess reserves? Reserves at the Fed Cash in vault 25 Checkable deposits Savings deposits 100 20 100 >>> Answer to 2 decimal places Securities 65 Loans 90 The total quantity of loans after the banks have lent all their excess reserves is SOmilion. The total quantity of deposits after the banks have lent all their excess reserves is Smillion
Risk Weight Bank Liabilities $ Bank Assets Cash and Treasury Securities Repurchase Agreements Municipal Bonds Single Family Home Mortgages $ 2,700 CMOS Commercial Loans Agricultural Loans Allowance for Loan Loss Bank Buildings Total $ 2,000 $ 1,000 $ 1,500 0% Deposits 20% Hot Money 20% Subordinated Debt 8,000 2$ 6,000 24 250 50% Common Stock 2$ 100 $ 2,500 $ 1,500 $ 2,100 $ (300) $ 2,000 $ 15,000 50% Surplus 100% Retained Earnings 2$ 300 2$ 350 100% 0% 100% 2$ 15,000 1. Calculate the minimum leverage capital for this bank.
Calculate bank’s ratio of Tier 1 capital to risk-weighted-assets and total capital to risk-weighted-assets under the terms of Basel 1 Agreement by using the following information. On Balance Sheet Items (Assets) Amount $ Cash 4,000,000 U.S Treasury securities 30,600,000 Deposit balances due from other banks 4,000,000 Loans secured by first liens on residential property (1-4 family dwellings) 66,000,000 Loans to corporations 105,300,000 Off Balance Sheet Items Standby letters of credit backing municipal bond 20,500,000 Long term unused loan commitments to corporate customers 25,500,000 Tier 1 capital 7,500,000 Tier 2 capital 5,800,000
The table below is the balance sheet for the Oilers Bank, which has a target reserve ratio of 5%. Liabilities/Equity Demand Deposits Shareholders' equity Assets $4,000 62,000 17,000 9,000 Reserves $72,000 20,000 Loans Securities Fixed assets Total 92,000 Total 92,000 a. The Oilers Bank is over-reserved v by $ b. The bank makes a loan equal to the excess reserves and the borrower writes a cheque (for the full amount of the loan) to another customer of the bank, who then deposits it. The new amount of excess reserves is $ c. Instead, the cheque written by the borrower is cleared against the Oilers Bank (the cheque was written to a customer of another bank). The amount of excess reserves held by the Oilers Bank is $ 14 of 40 Next > < Prev
Use the Table below to answer this question (Table: Bank Balance Sheet) Based on the table, what is the leverage ratio at the bank? Bank Balance Sheet Assets Reserves $10,000 Deposits $100,000 Loans Securities 40,000 10 05 100,000 4.67 Liabilities & Net Worth Debt 20,000 Equity 30,000