1. Calculate the banks asset utilization ratio (AU). (2 Marks)

Bank A (Dollars in Millions)
Assets				Liability and Equity
Cash	$	850		Deposits	$	6,475
Securities		1,925		Other Borrowing		1,645
Loans		5,400		Equity		1,030
Others		975		Total	$	9,150
Total	$	9,150

Income Statement
Interest income on loans	$	450
Interest income on securities		95
Interest expenses		246
Noninterest income		78
Nonincome expenses		112
Provision for loan loss		35
Taxes		115
NI	$	115

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