RBC requirements may induce bank managers to change their asset composition. Explain why. Determine how a shift

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RBC requirements may induce bank managers to change their asset composition. Explain why. Determine how a shift from any of the following should affect a bank’s required capital. How will each shift affect the bank’s profit potential?
a. From consumer loans to 1– 4 family mortgages
b. From U. S. agency securities to construction loans
c. From FNMA sponsored mortgage backed securities to municipal revenue bonds
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Bank Management

ISBN: 978-1133494683

8th edition

Authors: Timothy W. Koch, S. Scott MacDonald

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