Why such a small decline in asset value is a major concern

Reference no: EM13293646

Suppose a bank has total assets that consist of $2.85 billion in cash and $23.40 billion in loans. It has total liabilities of $24.15 billion and total equity of $2.10 billion. Create a simple balance sheet and determine how much equity capital the bank has a percentage of assets. Rewrite the balance sheet after a 3%decline in the value of the bank's loan portfolio. Explain/show mathematically why such a small decline in asset value is a major concern.

Reference no: EM13293646

Questions Cloud

What is its displacement in radians in this time : Suppose that a disk rotates through two revolutions in 4.2 seconds. What is its displacement in radians in this time

Design a circuit that generates the 9s complement : Design a circuit that generates the 9's complement of a BCD digit. Note that the 9's complement of d is 9-d.

What is its new density : A 100-cm^3 container has 4 g of ideal gas in it at 250 kPa. if the volume is changed to 50 cm^3, what is its new density

Design a majority of 1s circuit such that the output f : Design a majority of 1s circuit such that the output F is 1when a majority of the inputs X,Y,Z are 1. Simplify thefucion to its minimum form using karnaugh map.

Why such a small decline in asset value is a major concern : Explain/show mathematically why such a small decline in asset value is a major concern.

How many revolutions does it turn : A bicycle wheel is accelerating at the constant rate of 1 rev/s2. After 4.6s how many revolutions does it turn

What would you expect about the bank roa relative : Suppose that a well-known bank and a well-known non-bank have approximately the same ROE. What would you expect about the bank's ROA relative to the non-bank's ROA? Explain.

How long does is take for the ball to land down the field : A soccer player kicks a ball that is on the ground down the field. The balls initial velocity is 10 m/s, 30 degrees above the horizontal. How long does is take for the ball to land down the field

Obtain a set of minimum sop expression for switching circuit : Obtain a set of minimum SOP expression for switching circuit that will accept XS3 code at it input and provide BCD code at it output.

User Account

All Pages