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Problem 13-1 (LG 13-4) Refer to Table 1320, Table 1321, Table 1323 and Table 1324. Two depository institutions have composite CAMELS ratings of 1 or
Problem 13-1 (LG 13-4)
Refer to Table 1320, Table 1321, Table 1323 and Table 1324.
Two depository institutions have composite CAMELS ratings of 1 or 2 and are "well capitalized." Thus, each institution falls into the FDIC Risk Category I deposit insurance assessment scheme. Weights for the CAMELS components to calculate the weighted average CAMELS rating are 25 percent, 20 percent, 25 percent, 10 percent, 10 percent, and 10 percent for the C, A, M, E, L, and S components, respectively. Further, the institutions have the following financial ratios and CAMELS ratings:
Table 13-20 Table 13-21 Table 13-23 Table 13-24 Calculate the initial deposit insurance assessment rate tor each institution. (Do not round intermediate calculations. Round your answers to 3 decimal places. (e.g., 32.161))Step by Step Solution
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