Question
Consider a bank with the following balance sheet: Assets Liabilities Reserves $100 million Deposits $900 million Securities $50million Bank capital $50 million Loans $800 million
Consider a bank with the following balance sheet:
| Assets | Liabilities | ||
| Reserves | $100 million | Deposits | $900 million |
| Securities | $50million | Bank capital | $50 million |
| Loans | $800 million |
|
|
If the bank has to write off $60 million in loans, how would this affect the banks balance sheet? Would the bank be insolvent?
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Digital Business And Electronic Commerce
Authors: Bernd W Wirtz
1st Edition
3030634817, 9783030634810
