Question
8). If a bank finds its ROE too low because it has too much bank capital, what can it do to increase its ROE? (5
8). If a bank finds its ROE too low because it has too much bank capital, what can it do to increase its ROE? (5 marks)
9). What are the benefits and costs for a bank when it decides to increase its total bank capital? (5 marks)
10) Given the following balance sheet:
Assets (RM) Liabilities (RM) Statutory reserves 17 million Deposits 205 million Surplus reserves 3 million Capital 10 million Private bond 65 million Housing loans 70 million Commercial loan of 60 million
Statutory reserves and surplus reserves have zero weights. Private bonds and housing loans have a 50 percent weight, while commercial loans have a 100 percent weight. Calculate the value of risk -weighted assets. (10 marks)
11) Explain FIVE similarities and differences between Islamic banking and conventional banking. (15 marks)
12) Describe two similarities and two differences between the 1997 Asian Financial Crisis and the 2007 Global Financial Crisis. (10 marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started