Refer to Table 13-20, Table 13-21, Table 13-23 and Table 13-24. 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. Weights for the CAMELS components to calculate the weighted average CAMELS rating are 25 percent, 20 percent, 25 percent, 10 percent, 10 percent, and 10 percent for the C, A, M, E, L, and S components, respectively. Further, the institutions have the following financial ratios and CAMELS ratings: Institution A Institution B Financial Ratios: Leverage Ratio 8.76 7.89 Nonperforming Loans and Leases/Gross 0.49 0.64 Assets Other Real Estate Owned/Gross Assets 0.50 0.60 Net Income Before Taxes/Total Assets 2.29 1.75 Brokered Deposit Ratio 3.15 1.65 One-Year Asset Growth 7.75 5.25 Loans as a Percent of Total Assets: Construction & Development Commercial & Industrial Leases Other Consumer 0.54 0.44 16.76 12.30 1.85 0.95 18.65 18.35 Loans to Foreign Government 0.50 0.10 Real Estate Loans Residual Multifamily Residential Nonfarm Nonresidential 1-4 Family Residential 0.00 0.00 1.20 0.55 0.00 0.00 36.24 34.10 Loans to Depository Banks 2.10 0.70 Agricultural Real Estate Agriculture 1.10 4.25 1.80 5.60 CAMELS components: 1 1 1 2 1 2 2 1 1 1 2213LL Calculate the initial deposit insurance assessment rate for each institution. (Do not round intermediate calculations. Round your answers to 3 decimal places. (e.g., 32.161)) M CAMELS Institution A Institution B Initial assessment rate
Refer to Table 13-20, Table 13-21, Table 13-23 and Table 13-24. 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. Weights for the CAMELS components to calculate the weighted average CAMELS rating are 25 percent, 20 percent, 25 percent, 10 percent, 10 percent, and 10 percent for the C, A, M, E, L, and S components, respectively. Further, the institutions have the following financial ratios and CAMELS ratings: Institution A Institution B Financial Ratios: Leverage Ratio 8.76 7.89 Nonperforming Loans and Leases/Gross 0.49 0.64 Assets Other Real Estate Owned/Gross Assets 0.50 0.60 Net Income Before Taxes/Total Assets 2.29 1.75 Brokered Deposit Ratio 3.15 1.65 One-Year Asset Growth 7.75 5.25 Loans as a Percent of Total Assets: Construction & Development Commercial & Industrial Leases Other Consumer 0.54 0.44 16.76 12.30 1.85 0.95 18.65 18.35 Loans to Foreign Government 0.50 0.10 Real Estate Loans Residual Multifamily Residential Nonfarm Nonresidential 1-4 Family Residential 0.00 0.00 1.20 0.55 0.00 0.00 36.24 34.10 Loans to Depository Banks 2.10 0.70 Agricultural Real Estate Agriculture 1.10 4.25 1.80 5.60 CAMELS components: 1 1 1 2 1 2 2 1 1 1 2213LL Calculate the initial deposit insurance assessment rate for each institution. (Do not round intermediate calculations. Round your answers to 3 decimal places. (e.g., 32.161)) M CAMELS Institution A Institution B Initial assessment rate
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Bhupatbhai
Transcribed Image Text:Refer to Table 13-20, Table 13-21, Table 13-23 and Table 13-24.
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. Weights for the CAMELS components to calculate the weighted average CAMELS rating
are 25 percent, 20 percent, 25 percent, 10 percent, 10 percent, and 10 percent for the C, A, M, E, L,
and S components, respectively. Further, the institutions have the following financial ratios and
CAMELS ratings:
Institution A
Institution B
Financial Ratios:
Leverage Ratio
8.76
7.89
Nonperforming Loans and Leases/Gross
0.49
0.64
Assets
Other Real Estate Owned/Gross Assets
0.50
0.60
Net Income Before Taxes/Total Assets
2.29
1.75
Brokered Deposit Ratio
3.15
1.65
One-Year Asset Growth
7.75
5.25
Loans as a Percent of Total Assets:
Construction & Development
Commercial & Industrial
Leases
Other Consumer
0.54
0.44
16.76
12.30
1.85
0.95
18.65
18.35
Loans to Foreign Government
0.50
0.10
Real Estate Loans Residual
Multifamily Residential
Nonfarm Nonresidential
1-4 Family Residential
0.00
0.00
1.20
0.55
0.00
0.00
36.24
34.10
Loans to Depository Banks
2.10
0.70
Agricultural Real Estate
Agriculture
1.10
4.25
1.80
5.60
CAMELS components:
1
1
1
2
1
2
2
1
1
1
2213LL
Calculate the initial deposit insurance assessment rate for each institution. (Do not round
intermediate calculations. Round your answers to 3 decimal places. (e.g., 32.161))
M
CAMELS
Institution A
Institution B
Initial assessment rate
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