Question
Bank of America faces the following inflows and outflows during the coming month: 1. deposit withdrawals of $66 million 2. Customer loan repayments of $2016
Bank of America faces the following inflows and outflows during the coming month: 1. deposit withdrawals of $66 million 2. Customer loan repayments of $2016 million 3. sales of assets $36 million 4. operating expenses of $102 million 5. new loan request accepted of $588 million 6. deposits of $1340 million 7. borrowings from the money market of $86 million 8. nondeposit service fees of $54 million 9. borrowings to be repaid of $46 million 10. divided payment of $280 million 11. extraordinary income of $100. What is Bank of Americas projected net liquidity position for the coming month? Using the information given below calculate the ROA for each of the banks. Amounts in thousands Bank ROE Total Equity Total Asset 1. Barclays bank 4.31% 90.899 443.291 2. Midland bank 10.67% 41.585 381.505 3. J.P Morgan 7.45% 1.123.318 8.441.249 4. National bank 22.79% 51.799 386.696 5. Qatar bank 16.05% 214.197 2.300.388 1. discuss the difference between bank goals and bank objectives in the planning process. What is the ultimate objective of bank? 2.explain the meaning of standard & poors BBB and BB credit ratings. 3. explain the difference between a line of credit and a revolving loan. 4. why is government interested in supporting bank liquidity in the face of financial panic? Should very large banks be prevented from failing by the government? 5. how does the deposit compositions of small and large banks differ?
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