10. Use the data in Table 2-6 to answer the following questions a. What was the average annual growth rate in OBS total commitments over the period 1992-20151 b. What categories of contingencies have had the highest annual growth rates) c What factors are credited for the significant growth in derivative securities activities by banks! 11hhe Whitmaniyatinns identify which regulatory agen Chapter 02 Financial Services: Depository Instructions - FIGURE 2-6 Structural Changes in the Number of Savings Institutions, 1984-2015 Source Pederal Deposite Corporation rate Reparo years Number 300 250 Failures Mergers New charters 200 150 100 50 1984 1986 1988 1990 1992 1998 2000 2003 2004 2005 2008 2010 2012 Year be 2014 GTL test Qualified thirt lender test that a for the horse Yeled as held by this currently open by 1989 it was massively insolvent (see Chapter 19). Resulting legislation the FIR REA of 1989 abolished the FSLIC and created a new insurance fund (SAF) under the management of the FDIC for addition the act created the Resolution Trust Cor poration (RTC) to close the most insolvent savings associations Further, the FIRREA strengthened the capital tepurements of savingsinstitutions and constrained their nonmortgage related asset holding powers under a newly imposed qualified thrift lender, or QTL test. In 1991. Congress Practed the FDICIA FICTA intro duced risk-based deposit Insurance premiums starting in 1993 in an attempt to limit excess risk taking by savings institutions It also introduced a prompt corrective action (PCA) policy, such that regulators could close this and banks) taster (see Chapter 2012 In particular, if a savingsinstitution's ratio of its equity capital to its awes talls below 2 percent, it has to be closed down or recapitaired with three months As a result of the closing of weak savingsinstitutions and the strengthening of capital requirements the industry shrunk significantly both in numbers and in asset size, in the 1990s. Savingsinstitutions decreased in number om 17 in 1999 to 2.262. in 1993 percent and assets shrink from $1422 uitson to sto tril Ison by 30 percent) over the same period Balance Sheet and Recent Trends w stanie state save been used the future viabil V other in last en This only down B 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 Year D by 1989 it was massively insolvent (see Chapter 19). Resulting legislation the FIR- REA of 1989 abolished the FSLIC and created a new insurance fund (SAIF) under the management of the FDIC. In addition, the act created the Resolution Trust Cor- poration (RTC) to close the most insolvent savings associations Further, the FIRREA strengthened the capital requirements of savings institutions and constrained their nonmortgage-related asset-holding powers under a newly imposed qualified thrift lender, or OTL, test. In 1991. Congress enacted the FDICIA FDICTA intro- duced risk-based deposit insurance premiums (starring in 1993) in an attempt to limit excest risk taking by savings institutions. It also introduced a prompt corrective action APN policy, such that regulators could close this and hanks) faster (see Chaprer 20) In particular ita savings institution's ratio of its equity capital to its assets tails below 2 percent it has to be closed down a recapitalized within three months As a result of the closing of weak savings institutions and the strengthening of capital requirements the industry shrunk significantly, both in numbers and in het Size in the 1970stitutions decreased in number from 377 in 1939 to 2.262 n 1973 by percent and assets shrank from $1.27 million to $1001 tril n th 30 rnt vr it alie period Balance Sheet and Recent Trends 10. Use the data in Table 2-6 to answer the following questions a. What was the average annual growth rate in OBS total commitments over the period 1992-20151 b. What categories of contingencies have had the highest annual growth rates) c What factors are credited for the significant growth in derivative securities activities by banks! 11hhe Whitmaniyatinns identify which regulatory agen Chapter 02 Financial Services: Depository Instructions - FIGURE 2-6 Structural Changes in the Number of Savings Institutions, 1984-2015 Source Pederal Deposite Corporation rate Reparo years Number 300 250 Failures Mergers New charters 200 150 100 50 1984 1986 1988 1990 1992 1998 2000 2003 2004 2005 2008 2010 2012 Year be 2014 GTL test Qualified thirt lender test that a for the horse Yeled as held by this currently open by 1989 it was massively insolvent (see Chapter 19). Resulting legislation the FIR REA of 1989 abolished the FSLIC and created a new insurance fund (SAF) under the management of the FDIC for addition the act created the Resolution Trust Cor poration (RTC) to close the most insolvent savings associations Further, the FIRREA strengthened the capital tepurements of savingsinstitutions and constrained their nonmortgage related asset holding powers under a newly imposed qualified thrift lender, or QTL test. In 1991. Congress Practed the FDICIA FICTA intro duced risk-based deposit Insurance premiums starting in 1993 in an attempt to limit excess risk taking by savings institutions It also introduced a prompt corrective action (PCA) policy, such that regulators could close this and banks) taster (see Chapter 2012 In particular, if a savingsinstitution's ratio of its equity capital to its awes talls below 2 percent, it has to be closed down or recapitaired with three months As a result of the closing of weak savingsinstitutions and the strengthening of capital requirements the industry shrunk significantly both in numbers and in asset size, in the 1990s. Savingsinstitutions decreased in number om 17 in 1999 to 2.262. in 1993 percent and assets shrink from $1422 uitson to sto tril Ison by 30 percent) over the same period Balance Sheet and Recent Trends w stanie state save been used the future viabil V other in last en This only down B 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 Year D by 1989 it was massively insolvent (see Chapter 19). Resulting legislation the FIR- REA of 1989 abolished the FSLIC and created a new insurance fund (SAIF) under the management of the FDIC. In addition, the act created the Resolution Trust Cor- poration (RTC) to close the most insolvent savings associations Further, the FIRREA strengthened the capital requirements of savings institutions and constrained their nonmortgage-related asset-holding powers under a newly imposed qualified thrift lender, or OTL, test. In 1991. Congress enacted the FDICIA FDICTA intro- duced risk-based deposit insurance premiums (starring in 1993) in an attempt to limit excest risk taking by savings institutions. It also introduced a prompt corrective action APN policy, such that regulators could close this and hanks) faster (see Chaprer 20) In particular ita savings institution's ratio of its equity capital to its assets tails below 2 percent it has to be closed down a recapitalized within three months As a result of the closing of weak savings institutions and the strengthening of capital requirements the industry shrunk significantly, both in numbers and in het Size in the 1970stitutions decreased in number from 377 in 1939 to 2.262 n 1973 by percent and assets shrank from $1.27 million to $1001 tril n th 30 rnt vr it alie period Balance Sheet and Recent Trends