Dude Bank has total assets of $200bn. Reserves amount to $15bn, securities $55bn with the...

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Accounting

Dude Bank has total assets of $200bn. Reserves amount to $15bn, securities $55bn with the residual accounted for by loans and loan loss reserves (the latter entered as a $15bn contra-asset on the balance sheet). Debt liabilities comprise deposits of $150bn and other debt totalling $30bn. The coverage ratio is 50%.

3a) What is Dude Banks leverage ratio?

3b) What is Dude Banks reserves ratio?

3c) What is the implied value of Dude Banks NPLs (non-performing loans?)

3d) What is Dude Banks Texas Ratio?

3e) Should we be concerned about Dude Bank? (yes or no with a few words of explanation)

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