Question
This is the 201X Balance Sheet of the Bank B with annually average figures Assets Amount Interest rate (%) Risk weight (%) Liabilities & Equity
This is the 201X Balance Sheet of the Bank B with annually average figures
Assets | Amount | Interest rate (%) | Risk weight (%) | Liabilities & Equity | Amount | Interest rate (%) |
(USD mil) | (USD mil) | |||||
Cash and deposits due from banks | 150 | 0 | Demand deposit | 1,500 | 1 | |
3-month Treasury Bills | 550 | 1 | 100 | 3-month bank deposits | 800 | 5 |
5-year fixed-rate Government Bonds | 450 | 3 | 0 | 6-month corporate deposits | 2,750 | 11 |
12-month floating-rate corporate loans | 2,950 | 12 | 100 | Non-deposit borrowings | 1450 | 16 |
10 year fixed-rate mortgage loans | 2,500 | 17 | 50 | Equity | 650 | |
Fixed assets | 550 | 100 |
This Bank earned USD 550 mil in fees and commissions and USD 20 mil in securities gain; paid USD 250 mil in overhead costs; USD 950 in loan loss provision. Tier 1 capital was equal to 35% of equity and Tier 2 capital was equal to 10% of non-deposit borrowings, deduction is USD 15 mil. Corporate income tax rate is 18%.
- How much are: Net interest margin, ROE, CAR
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