The year is 2018 and you are a credit analyst at a bank. Your treasury funding desk has an opportunity to do forward rate transactions with M&T Bank and wants to set up a trading limit.

Limit: $1,000,000 credit exposure limit

Scope: One year forward rate agreement

Summary: At any time, your trading desk might enter into an FRA with M&T Bank.

With the latest trade with M&T, the firmwide exposure to M&T across many trades is now greater than $5,000,000. The CRO decides to review M&T because of this level of exposure and asks you for the following credit metrics on M&T. Use the financial statement links below.

Debt to equity ratio = Total Liabilities / Shareholders Equity

Return on Assets = Net Income / Total Assets

Return on Equity = Net Income / Shareholders Equity

Assets-to-equity Ratio = Total Assets / Total Equity