SECTION D: CREDIT RISK AND OPERATING EFFICIENCY (2 x 5 marks = 10 marks) In this section, you are given the following credit risk ratios and operating efficiency ratios: Credit risk ratio Formula ENBD Umm AL Quwain Bank LLP ratio 0.71% 0.54% Loan loss provisions / total assets Total loans / Total assets 71% 77% Total deposit/total assets 74.4% 63.2% Loans to assets ratio Deposit to assets ratio Operating efficiency Operation efficiency 1 Operating efficiency 2 165% Total operating income / total operating expense Non-interest expense / total assets 303% 0.99% 1.33% A- A. Based on credit ratio data, which bank has the highest credit risk? (justify your answer) B. Based on the operating efficiency ratios, discuss which bank appears to be more efficient and suggest how it managed to be more efficient? SECTION F.(5 marks) Based on the analyses above, make a summary note why bank ENBD has higher ROE