QUESTION THREE Research and practice argues that ownership of banks matters. Explain how bank ownership can be used as a strategy in bank management. (4 marks) Explain the importance of lending to commercial banks. (4 marks) The following data was extracted from the financial statements of Central Bank in a country's banking system. a) b) c) NB Net Assets Gross Loans Total Loans Total Non Performance loans 2012 2,330,335 1,330,365 1,318,570 50,122 2013 2,703,394 1,578,768 1,564,635 67,724 Calculate the asset quality of the banking system indicated above. (4 marks) (4 marks) Explain whether deposit insurance is able to ensure stability of the banking system of a country. (4 marks) Why do commercial banks need to be monitored? Explain the consequences of inadequate monitoring to commercial banks. [Total: 20 marks]