Two depository institutions have composite CAMELS ratings of 1 or 2 and are "well capitalized." Thus, each institution falls into the FDIC Risk Category I deposit insurance assessment scheme. Further, the institutions have the following financial ratios and CAMELS ratings: Use Table 1311.
The DIF reserve ratio is currently 1.30 percent. Calculate the initial deposit insurance assessment rate for each institution. (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.161))
Institution A 8. 75 Institution B 7.88 2. 28 1. 80 Tier I leverage ratio (%) Net income before taxes/risk-weighted assets (%) Nonperforming loans and leases/gross assets Other real estate owned/gross assets (%) Brokered deposits/total assets (%) One year asset growth 0.48 0.60 3. 00 7.55 0.63 0.66 1. 80 5. 40 Loans as a Percentage of Total Assets: Construction & Development Commercial & Industrial Leases Other Consumer Loans to Foreign Government Real Estate Loans Residual Multifamily Residential Nonfarm Nonresidential 1-4 Family Residential Loans to Depository Banks Agricultural Real Estate Agricultural 0.00 16. 36 1.80 18. 60 0.55 0.00 1. 15 0.00 36. 78 1. 95 1. 30 2. 20 0.00 12. 55 0.65 18. 30 0.05 0.00 0.60 0.00 33. 54 0.85 4. 30 5. 20 CAMELS components: C A M E L S 3 2 1 3 1 2 1 3 2 3 1 3 TABLE 13-11 CAMELS Component Weights CAMELS Component Weight 25% A 20 M 25 E 10 L 10 s 10 Source: FDIC, Federal Register, May 20, 2016. www.fdic.gov The DIF reserve ratio is currently 1.30 percent. Calculate the initial deposit insurance assessment rate for each institution. (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.161)) Institution A Institution B Initial assessment rate Institution A 8. 75 Institution B 7.88 2. 28 1. 80 Tier I leverage ratio (%) Net income before taxes/risk-weighted assets (%) Nonperforming loans and leases/gross assets Other real estate owned/gross assets (%) Brokered deposits/total assets (%) One year asset growth 0.48 0.60 3. 00 7.55 0.63 0.66 1. 80 5. 40 Loans as a Percentage of Total Assets: Construction & Development Commercial & Industrial Leases Other Consumer Loans to Foreign Government Real Estate Loans Residual Multifamily Residential Nonfarm Nonresidential 1-4 Family Residential Loans to Depository Banks Agricultural Real Estate Agricultural 0.00 16. 36 1.80 18. 60 0.55 0.00 1. 15 0.00 36. 78 1. 95 1. 30 2. 20 0.00 12. 55 0.65 18. 30 0.05 0.00 0.60 0.00 33. 54 0.85 4. 30 5. 20 CAMELS components: C A M E L S 3 2 1 3 1 2 1 3 2 3 1 3 TABLE 13-11 CAMELS Component Weights CAMELS Component Weight 25% A 20 M 25 E 10 L 10 s 10 Source: FDIC, Federal Register, May 20, 2016. www.fdic.gov The DIF reserve ratio is currently 1.30 percent. Calculate the initial deposit insurance assessment rate for each institution. (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.161)) Institution A Institution B Initial assessment rate
