Calculate: 

a) Bank One-Two ROA 

b) Bank One-Two ROE 

c) Bank One-Two Capital Adequacy Ratio 

(Basel 1) In the context of Asset and Liability Management and Capital Management, Bank One-Two intends to replace a long-term B-rated bond issuance with less expensive funding and to free- 

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Bank One-Two is a large commercial bank established in the European Union; it is a key player in the retail and corporate banking sectors and has a large branch network in Central and Eastern Europe (CEE). Bank One-Two mid-term strategy includes expanding further into the CEE area, to become the leader provider of residential mortgages. Below is Bank One-Two initial balance sheet position (in million): ASSETS Cash Interbank loans Securities Mortgages 60 240 490 1210 LIABILITIES Retail deposits Interbank deposits Bonds Equity 1324 136 450 90 TOTAL 2000 TOTAL At the end of the last accounting period, the Bank net profit was 36 ( million). 2000 Bank One-Two is a large commercial bank established in the European Union; it is a key player in the retail and corporate banking sectors and has a large branch network in Central and Eastern Europe (CEE). Bank One-Two mid-term strategy includes expanding further into the CEE area, to become the leader provider of residential mortgages. Below is Bank One-Two initial balance sheet position (in million): ASSETS Cash Interbank loans Securities Mortgages 60 240 490 1210 LIABILITIES Retail deposits Interbank deposits Bonds Equity 1324 136 450 90 TOTAL 2000 TOTAL At the end of the last accounting period, the Bank net profit was 36 ( million). 2000

Answer rating: 100% (QA)

Bank OneTwo Analysis for Expansion into Residential Mortgages Based on the provided information about Bank OneTwo heres an analysis of their potential position for expanding into residential mortgages ... View the full answer