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 3 decimal places. (e.g., 32.161))

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))

Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 3SEQ
See similar textbooks
icon
Related questions
Question
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: Financial Ratios: Leverage Ratio Nonperforming Loans and Leases/Gross Assets Other Real Estate Owned/Gross Assets Net Income Before Taxes/Total Assets Brokered Deposit Ratio One-Year Asset Growth Loans as a Percent of Total Assets: Construction & Development Commercial & Industrial Leases Other Consumer Loans to Foreign Government Real Estate Loans Residual Multifamily Residential Nonfarm Nonresidential 1-4 Family Residential Loans to Depository Banks i Agricultural Real Estate Agriculture CAMELS components: Initial assessment rate Institution A Institution A 8.70 0.43 0.80 2.23 2.25 6.80 0.48 14.36 1.55 18.35 0.40 0.00 0.90 0.00 39.48 1.20 2.55 4.20 2 1 3 3 2 Institution 6 Institution B 7.83 0.58 0.82 2.05 2.55 6.15 0.38 13.80 0.65 18.05 0.20 0.00 0.85 0.00 36.05 1.60 4.00 3.20 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)) 2 3 3 1
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: Financial Ratios: Leverage Ratio Nonperforming Loans and Leases/Gross Assets Other Real Estate Owned/Gross Assets Net Income Before Taxes/Total Assets Brokered Deposit Ratio One-Year Asset Growth Loans as a Percent of Total Assets: Construction & Development Commercial & Industrial Leases Other Consumer Loans to Foreign Government Real Estate Loans Residual Multifamily Residential Nonfarm Nonresidential 1-4 Family Residential Loans to Depository Banks i Agricultural Real Estate Agriculture CAMELS components: Initial assessment rate Institution A Institution A 8.70 0.43 0.80 2.23 2.25 6.80 0.48 14.36 1.55 18.35 0.40 0.00 0.90 0.00 39.48 1.20 2.55 4.20 2 1 3 3 2 Institution 6 Institution B 7.83 0.58 0.82 2.05 2.55 6.15 0.38 13.80 0.65 18.05 0.20 0.00 0.85 0.00 36.05 1.60 4.00 3.20 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)) 2 3 3 1
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 4 images

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
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS