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what conclusin can you draw from the table regarding the impact of OBS activities on equity (net worth)? 4. Off-Balance-Sheet Risks-what conclusion can you draw

what conclusin can you draw from the table regarding the impact of OBS activities on equity (net worth)? image text in transcribed
4. Off-Balance-Sheet Risks-what conclusion can you draw from the below table regarding the impact OBS activities on Equity (net worth)? Valuation of an FTs Net Worth with and without Consideration of Off-Balance-Sheet Activities TABLE 19-4 Assets Liabilities Panel A: Traditional valuation of an FI's net worth Market value of liabilities (L) Net worth (E) 90 10 TOO Market value of ussets (A) 100 TOO Panel B: Valuation of an FI's net worth with on- and off-balance-sheet activitles valued Market value of liabili ties (L) Net worth (E) Market value of contingent liabilities (CL) 90 Market value of assets (A) 100 Market value of contingent assets (CA) 55 150 50 150

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