Timothy Gartner, an employee in the Bank of Trust and Faith, has requested for a loan of $200,000 to buy a private cruise. The bank has an unimpaired capital and surplus of $3.5 million and $75 million in total time and savings deposits. Average revenue for the bank in the last three years is $18.5 million and a net interest income of $5.2 million. What is the maximum amount of loan the bank can grant to Timothy?

Answer rating: 100% (QA)

To determine the maximum amount of loan the Bank of Trust and Faith can grant to Timothy Gartner we need to consider the banks capital adequacy and re... View the full answer