NEED A PERFECT PAPER? PLACE YOUR FIRST ORDER AND SAVE 15% USING COUPON:

4.8/5

solution

The managers of Clear Creek
Bank asks for a performance/risk analysis, and asks you to answer
the following questions.

Clear Creek Bank’s balance
sheet is as follows
:

Assets:
Ave.
Duration

Securities
4% rate
$ 100
million
1 year

Long-term
Loans 8%
rate $
500
million
8 years

Total Assets
$
600 million

Liabilities & Equity

Short-term
Deposits 1% rate $ 440
million
1 year

Certificates
of Deposit 4% rate 100
million
3 years

Total
Liabilities
$540 million

Equity
60 million

Total
Liab.&
Equity
$600 million

  1. What is the bank’s expected net interest income $ (NII)
    and expected net interest margin (NIM)? [
    Hint: NII =
    Sum (Each asset x its rate) – Sum (Each liability x its rate)]

and NIM = NII
/ Earning Total Assets (excludes cash)

NII ($’s)
____________ NIM %
______________

  1. If the bank has the NIM % that you calculated above, a
    PLL% of 1.00%, and a Burden % of 3.00%, what is the bank’s
    operating ROA before taxes (NIM – Burden% – PLL%)?
    Operating ROA (OROA) _______________

c. What is the equity
multiplier (EM) for the bank? (hint EM = total
assets/equity)

EM
______________

Solution:

15% off for this assignment.

Our Prices Start at $11.99. As Our First Client, Use Coupon Code GET15 to claim 15% Discount This Month!!

Why US?

100% Confidentiality

Information about customers is confidential and never disclosed to third parties.

Timely Delivery

No missed deadlines – 97% of assignments are completed in time.

Original Writing

We complete all papers from scratch. You can get a plagiarism report.

Money Back

If you are convinced that our writer has not followed your requirements, feel free to ask for a refund.

WeCreativez WhatsApp Support
Our customer support team is here to answer your questions. Ask us anything!