Use the information presented in Southwestern Mutul Bank's balance sheet to anthe fngte Bank's Balance Sheet Assets Liabilities and Owners' Equity Reserves $175 Deposits $1,400 Loans $700 Debe $225 Securities $875 Capital (owners equity) $125 Suppose the owners of the bank borrow S100 to supplement ther estg reserves. Th wovd crea reerv coat nd account. 0 alue of This would alse bring the leverage ratio from as tal val of Which of the following is true of the capital requrement? Check all that avy O s ntended goal s to protect the interests of the depositors O it specifie a menimum leverage ratio for all banks ts intended goal is to protect the interests of those who bold euty in the hek
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- The T-account below represents assets and liabilities for a bank. Use the T-account to calculate the bank's loans Loans Bonds Reserves Provide your answer below: million Assets ? $18 million $5 million Liabilities + Net Worth Deposits Net Worth $12 million $13 million2. Mean Green Bank started its first day of operations with $10 million in capital. $100 million in checkable deposits is received. The bank issues a $30 million commercial loan and another $30 million in mortgages. The required reserves are 8%.Assuming an economy have only two commercial banks in it banking system, Classic Bank and Prudent Bank. The following shows the balance sheet of the two banks as at 2019.Classic BankBalance sheet as at December, 2019GHSm GHSmAssets: Liabilities & Equity:Reserves 1,000 Deposits 3,000Securities 2,000 Equity 7,000Loans & Advances 1,000Property, Plant and Equipment 6,000 .10,000 10,000Prudent BankBalance sheet as at December, 2019GHSm GHSmAssets: Liabilities & Equity:Reserves 600 Deposits 2,500Securities 1,500 Equity 4,400Loans & Advances 800Property, Plant and Equipment 4,000 .6,900 6,900Assume a required reserve ratio of 10%.What is the amount of excess reserves in this commercial banking system?
- Assuming an economy have only two commercial banks in it banking system, Classic Bank and Prudent Bank. The following shows the balance sheet of the two banks as at 2019.Classic BankBalance sheet as at December, 2019GHSm GHSmAssets: Liabilities & Equity:Reserves 1,000 Deposits 3,000Securities 2,000 Equity 7,000Loans & Advances 1,000Property, Plant and Equipment 6,000 .10,000 10,000Prudent BankBalance sheet as at December, 2019GHSm GHSmAssets: Liabilities & Equity:Reserves 600 Deposits 2,500Securities 1,500 Equity 4,400Loans & Advances 800Property, Plant and Equipment 4,000 .6,900 6,900Assume a required reserve ratio of 10%.(a) What is the amount of excess reserves in this commercial banking system?…………………………….………………………………………………………………………………………………………………………………………………….……………………………………..……………………………………………………………………………….…………………………………………………………………………………………………………………………………………………(b)What is the maximum amount that the money supply can be expanded?What would be the effect of a fall in…Create a balance sheet with the following information. Create a balance sheet for the following information. Bank Accoutns recievable Equipement Accounts payable Long-term debt Capital Retained earning Withdrawis msi in ^ 00 C 4 I P JOOOOL K V B m 2050 6100 900 150 2000 5000 10900 9000 0 ALTOR inConsider the balance sheet for Inspired to Thrive (IT) Bank below: Inspired to Thrive Bank Balance Sheet as at December 31, 2021 Assets SLiabilities and Owner's Equity 275 Deposits 1,105 Debts 660 Owner's Equity Reserves 1,550.00 Loans 340.00 Securities 150.00 2,040 2,040.00 What is the leverage ratio of IT bank? Why is this ratio significant to the bank's operation?
- Examine the balance sheet of commercial banks in the tollowing tabie. Assete S Blion Total Liabilities and Net Horth SBAllion Total Liabilities Real anseta Equipment and premisen Other real estate $ 10,281.3 1,206.0 156.2 0.9 Deposita Debt and other borroved funda Federal funda and repurehase 56.0 8.9 0.4 1.0 Total real assets 225.1 1.2 1,967.0 10.7 agreements Other 1,523.0 S 15,057.3 8.3 82.0 Total liabilities Tinaneial aeta Cash 898.3 4.9 43.7 34. 1,223.2 6.? 92.1 8,032.1 6,759.3 Investment securities Loans and leaees Other finaneial asseta Total financial asseta 16,912.9 Other assets Intangible asseta other Total other asseta 421.4 2.3 1,230.1 1.4 6.7 $ 3,310. 18,368.1 100.0 Net vorth 18.0 $ 18,368.1 100.0 Total Balance sheet of FDIC-insured commercial banks and savings institutions Note: Column sums may differ from total because of rounding error. Source: Federal Deposit Insurance Corporation, www.fdic.gov, March 2016. a. What is the ratio of real assets to total assets? (Round…a) Bank A has the following balance sheet (in millions): Assets Cash Securities Loans Total assets $5 10 55 $70 Liabilities and equity Deposits Equity Total liabilities and equity The bank is expecting a $12 million net deposit drain. $62 8 $70 i) Show the new balance sheet if the bank uses purchased liquidity management to offset the expected drain. Also, explain the effect on the size and composition of assets and liabilities ii) Show the new balance sheet if the bank uses stored liquidity management to offset the expected drain. Also, explain the effect on the size and composition of assets and liabilities.Homestead State Bank has the following financial information. Cash Securities Investments Net Loans Net Premises and Equip. Balance Sheet Deposits Non-Deposit Borrowings" Equity Capital Total Liabilities and Equity 18.33% Total Assets 20.59% 19.70% 18.75% Homestead State Bank Information Table $50 Interest Income $600 Interest Expenses $1200 Non-Interest Income $250 "All purchased funds Use this information to calculate Homestead State Bank's ROE Non-Interest Expenses $2100 Provision for Loan Losses $970 Pre Tax Net Operating Income $800 Security Gains (Losses) $330 Taxes $2100 Net Income Income Statement $420 ($150) $50 ($110) ($60) $160 ($40) ($45) $65
- A bank’s customer wants to exercise a $6,750,000 loan commitment. Show the balance sheet after the loan is established using purchased liquidity to fund the loan. Assets Liabilities and Equity Cash $1,550,000 Deposits $7,960,000 Loans 3,470,000 Equity 1,440,000 Securities 4,380,000 Total Assets $9,400,000 Total Liabilities and Equity $9,400,000 Please answer with excel explaination. Don't upload image.Nearby Bank has the following balance sheet (in millions): Assets Liabilities and Equity Cash $60 Demand deposits $140 5-year T notes $60 1-year CD $160 30-year mortgages $200 Equity $20 Total Assets $320 Total L and E $320 What is the maturity gap for Nearby Bank?a) Bank A has the following balance sheet (in millions): Assets Cash Securities Loans Total assets $70 The bank is expecting a $12 million net deposit drain. Liabilities and equity Deposits Equity Total liabilities and equity $5 10 55 $62 9 $70 ii) Show the new balance sheet if the bank uses stored liquidity management to offset the expected drain. Also, explain the effect on the size and composition of assets and liabilities.