1. Why was the moratorium placed on the KASB Bank by the State Bank of Pakistan? Determine the Tier I capital shortage for the years 2012 and 2013 assuming there was no reduction required as per Exhibit 5. 2. What methods were adopted by KASB Bank management to resolve the shortage of capital? 3. What plan was prepared by the Board of Directors (BOD) to deal with the situation and what is your opinion of this plan? 4. Analyse the conditions prevailing during 2009 to 2014 that affected the small bank such as KASB Bank.

Answer rating: 100% (QA)

KASB Bank Moratorium Analysis Based on the information provided heres an analysis of the KASB Bank situation 1 Reasons for Moratorium The State Bank o... View the full answer