What actions can do to help improve the standards

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Asset growth The banking sector‘s total assets also grew In April. reaching P1356 trillion from P18." trillion a month ago. Ricafort explained this was driven by the 1.8-percent month-on-month increase in total deposits amounting to trillion in April. Many businesses. households. and other Institutions mostly adopted a more conservative stance by Increasing their cash positions and deposits he said. This was to  better weather the unprecedented iockdown of the local economy as a matter of prudence." Rlcafort said. The banking industry is holding cash amounting to P19 trillion as of end-April.

Question 1. Based on the modules discussed, is the 2.08% increase in the capitalization a good indication to the banking sector? Explain your answer.

Question 2. Will the lowering loan portfolio affect the liquidity position of banks given that deposits are increasing? Explain your answer.

Question 3. Why do equity holders care more about ROE than ROA?

Question 4. If a bank has a shortage in its capital position, what actions can it do to help improve the standards? Give a maximum of 3 actions and briefly explain each.

Question 5. If a bank finds its ROE is too low because it has too much bank capital, what can it do to raise its ROE?

Question 6. Why are banks counseled not to lend money on the strength of the borrower's collateral

Reference no: EM132635593

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