Question
The credit risk exposure of the bank is another issue that needs attention. Unibank obtained the following data regarding the national average exposure of all
The credit risk exposure of the bank is another issue that needs attention. Unibank obtained the following data regarding the national average exposure of all banks and one competitor bank that serves the same target markets as Unibank:
Sectors | National average of all banks | UniBank | Competitor Bank |
Small business | 25% | 50% | 10% |
Consumer loans | 10% | 30% | 10% |
Housing loans | 30% | 20% | 20% |
Corporate loans | 35% | 0% | 60% |
UniBank would like to estimate how much its loan portfolio deviate from the national average compared to the portfolio of the competitor bank. You are requested to calculate how much the loan portfolios of UniBank and the competitor bank deviate from the national average
a. How much do UniBank and the competitor bank deviate from the national average? Show your calculations in the relevant cells of the template. (8 marks)
Formula | Bank A | Bank B | |
Small business | |||
Consumer loans | |||
Housing loans | |||
Corporate loans | |||
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started