1
answer
0
watching
594
views
28 Sep 2019
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 rations and CAMELS ratings:
Institution A Institution B Tier 1 Leverage Ratio (%) 8.62 7.75 Loans Past Due 30-89 days/gross assets (%) 0.45 0.56 Nonperforming assets/gross assets (%) 0.35 0.5 Net Loan Charge-offs/gross assets (%) 0.28 0.32 Net Income Before Taxes/risk-weighted assets (%) 2.15 1.86 Adjusted brokered deposits ratio (%) 0.00 15.56 CAMELS Components: C 1 1 A 2 2 M 1 2 E 2 3 L 1 1 S 2 1
Calculate the initial deposit insurance assessment for each institution. Please show your work in Excel.
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 rations and CAMELS ratings:
Institution A | Institution B | |
Tier 1 Leverage Ratio (%) | 8.62 | 7.75 |
Loans Past Due 30-89 days/gross assets (%) | 0.45 | 0.56 |
Nonperforming assets/gross assets (%) | 0.35 | 0.5 |
Net Loan Charge-offs/gross assets (%) | 0.28 | 0.32 |
Net Income Before Taxes/risk-weighted assets (%) | 2.15 | 1.86 |
Adjusted brokered deposits ratio (%) | 0.00 | 15.56 |
CAMELS Components: | ||
C | 1 | 1 |
A | 2 | 2 |
M | 1 | 2 |
E | 2 | 3 |
L | 1 | 1 |
S | 2 | 1 |
Calculate the initial deposit insurance assessment for each institution. Please show your work in Excel.
Trinidad TremblayLv2
28 Sep 2019