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consider the following alobreviated bank in conce statement Cinq million): Het interest in come Provision for loan losses Hon-interest income Hon-interest expense 7.500 -3.500 1.250
consider the following alobreviated bank in conce statement Cinq million): Het interest in come Provision for loan losses Hon-interest income Hon-interest expense 7.500 -3.500 1.250 - 2.500 2.150 Pre-tax operations Profit the bank's abbreviated balance sheet is given below Again, suppose net interest income increases by 15 % and provision for logn lorkes increases by 35 %. On a pre-fax basis, by how much would provision for loan losses have to rise before the bank's equity is wiped out? Assets Liabilities Cash Beposits markatable securities to subordinated Ist debt I Loans 80 Equity capital Fixed assets 85 8 3 100 100 / Cotal
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