Calculate the initial deposit insurance assessment rate for each institution (Do not round Intermediate calculations. Round your answers to 3 decimal places. (e.g., 32.161))
Calculate the initial deposit insurance assessment rate for each institution (Do not round Intermediate calculations. Round your answers to 3 decimal places. (e.g., 32.161))
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 3SEQ
Related questions
Question
![Refer to Table 13-20, Table 13-21. Table 13-23 and Table 13-24
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. Weights for the CAMELS components to calculate the weighted average
CAMELS rating are 25 percent, 20 percent, 25 percent, 10 percent, 10 percent, and 10 percent for the C, A, M. E, L, and S components,
respectively. Further, the institutions have the following financial ratios and CAMELS ratings:
Financial Ratios:
Leverage Ratio
Nonperforming Loans and Leases/Gross
Assets
Other Real Estate Owned/Gross Assets
Net Income Before Taxes/Total Assets
Brokered Deposit Ratio
One-Year Asset Growth
Loans as a Percent 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 i
Agricultural Real Estate
Agriculture
CAMELS components:
Initial assessment rate
Institution A
Institution A
8.70
0.43
0.80
2.23
2.25
6.80
0.48
14.36
1.55
18.35
0.40
0.00
0.90
0.00
39.48
1.20
2.55
4.20
2
1
3
3
2
Institution 6
Institution B
7.83
0.58
0.82
2.05
2.55
6.15
0.38
13.80
0.65
18.05
0.20
0.00
0.85
0.00
36.05
1.60
4.00
3.20
Calculate the initial deposit insurance assessment rate for each Institution (Do not round Intermediate calculations. Round your
answers to 3 decimal places. (e.g., 32.161))
2
3
3
1](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fff632734-ff2a-4ddb-acf0-339d9f46d538%2Ffe7cb971-0438-48ce-bcd6-39f1825c5d8f%2Flxx78lc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Refer to Table 13-20, Table 13-21. Table 13-23 and Table 13-24
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. Weights for the CAMELS components to calculate the weighted average
CAMELS rating are 25 percent, 20 percent, 25 percent, 10 percent, 10 percent, and 10 percent for the C, A, M. E, L, and S components,
respectively. Further, the institutions have the following financial ratios and CAMELS ratings:
Financial Ratios:
Leverage Ratio
Nonperforming Loans and Leases/Gross
Assets
Other Real Estate Owned/Gross Assets
Net Income Before Taxes/Total Assets
Brokered Deposit Ratio
One-Year Asset Growth
Loans as a Percent 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 i
Agricultural Real Estate
Agriculture
CAMELS components:
Initial assessment rate
Institution A
Institution A
8.70
0.43
0.80
2.23
2.25
6.80
0.48
14.36
1.55
18.35
0.40
0.00
0.90
0.00
39.48
1.20
2.55
4.20
2
1
3
3
2
Institution 6
Institution B
7.83
0.58
0.82
2.05
2.55
6.15
0.38
13.80
0.65
18.05
0.20
0.00
0.85
0.00
36.05
1.60
4.00
3.20
Calculate the initial deposit insurance assessment rate for each Institution (Do not round Intermediate calculations. Round your
answers to 3 decimal places. (e.g., 32.161))
2
3
3
1
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 4 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Survey of Accounting (Accounting I)](https://www.bartleby.com/isbn_cover_images/9781305961883/9781305961883_smallCoverImage.gif)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
![Survey of Accounting (Accounting I)](https://www.bartleby.com/isbn_cover_images/9781305961883/9781305961883_smallCoverImage.gif)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning