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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%.

  1. How much are: Net interest margin, ROE, CAR

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