I am looking for the answer to question 30 of ch.19 of FInancial Insitutions Management by...

70.2K

Verified Solution

Question

Finance

I am looking for the answer to question 30 of ch.19 of FInancialInsitutions Management by Cornett and Saunders. It is regarding therisk category in addition to the dollar value of deposit insurancepremiums.

Million Bank has a composite CAMELS rating of 2, total riskbased capital ratio of 9.8%, Tier 1 risk based capital ratio of6.8%, CET1 leverage ratio of 6.0%, and a tier 1 leverage ratio of4.9%, l. The avg total assets are $500 mil, avg Tier 1 equity of$24.5 mil. What deposit insurance risk category does the bank fallinto? What is the bank’s deposit insurance assessment rate,assuming DIF reserve ratio 1.18%, the dollar value of depositinsurance premiums?

Answer & Explanation Solved by verified expert
3.8 Ratings (523 Votes)
Under The regulation of FDIC The authority uses the insuredinstitutions on six factors such as Capital Asset qualityManagement Earnings Liquidity and sensitivity markets to allocatethe rating to the    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

I am looking for the answer to question 30 of ch.19 of FInancialInsitutions Management by Cornett and Saunders. It is regarding therisk category in addition to the dollar value of deposit insurancepremiums.Million Bank has a composite CAMELS rating of 2, total riskbased capital ratio of 9.8%, Tier 1 risk based capital ratio of6.8%, CET1 leverage ratio of 6.0%, and a tier 1 leverage ratio of4.9%, l. The avg total assets are $500 mil, avg Tier 1 equity of$24.5 mil. What deposit insurance risk category does the bank fallinto? What is the bank’s deposit insurance assessment rate,assuming DIF reserve ratio 1.18%, the dollar value of depositinsurance premiums?

Other questions asked by students