Question
Fun Bank has total assets of $200bn. Reserves amount to $15bn, securities $55bn with the residual accounted for by loans and loan loss reserves (the
Fun Bank has total assets of $200bn. Reserves amount to $15bn, securities $55bn with the residual accounted for by loans and loan loss reserves (the latter entered as a $15bn contra-asset on the balance sheet). Debt liabilities comprise deposits of $150bn and other debt totalling $30bn. The coverage ratio is 50%.
What is Fun Banks leverage ratio?
What is Fun Banks reserves ratio?
What is the implied value of Fun Banks NPLs (non-performing loans?)
What is Fun Banks Texas Ratio?
Should we be concerned about Fun Bank?
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Financial Reporting and Analysis
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
7th edition
1259722651, 978-1259722653
