Fun Bank has total assets of $200bn. Reserves amount to $15bn, securities $55bn with the residual accounted
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Question:
Fun Bank has total assets of $200bn. Reserves amount to $15bn, securities $55bn with the residual accounted for by loans and loan loss reserves (the latter entered as a $15bn contra-asset on the balance sheet). Debt liabilities comprise deposits of $150bn and other debt totalling $30bn. The coverage ratio is 50%.
What is Fun Bank’s leverage ratio?
What is Fun Bank’s reserves ratio?
What is the implied value of Fun Bank’s NPLs (non-performing loans?)
What is Fun Bank’s Texas Ratio?
Should we be concerned about Fun Bank?
Expert Answer:
1 Leverage Ratio Total Assets Total Equity Leverage Ratio 200000000000 35000000000 Leverage Ratio 57... View the full answer
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