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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

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