Calculate the initial deposit insurance assessment rate for


Two depository institutions have composite CAMELS ratings of 1 or 2 and are ‘well capitalized.'

Thus, each institution falls into the FDIC Risk Category I deposit insurance assessment scheme. Further, the institutions have the following financial ratios and CAMELS ratings:

Tier I leverage ratio (%)
8.77

7.90
  Loans past due 30-89 days/gross assets (%)
0.60

0.71
  Nonperforming assets/gross assets (%)
0.50

0.65
  Net loan charge-offs/gross assets (%)
0.43

0.47
  Net income before taxes/risk-weighted assets (%)
2.30

2.01
  Adjusted brokered deposits ratio (%)
0.00

15.71
  CAMELS components:





    C
1

1
    A
2

1
    M
2

2
    E
2

2
    L
2

2
    S
1

1

Pricing Multiplier
  Uniform Amount 4.861           
  Tier I leverage ratio (%) (0.056)          

  Loans past due 30-89 days/gross assets (%)

0.575           
  Nonperforming assets/gross assets (%) 1.074           
  Net loan charge-offs/gross assets (%) 1.210           
  Net income before taxes/risk-weighted assets (%) (0.764)          
  Adjusted brokered deposits ratio (%) 0.065           
  Weighted average CAMELS component ratings 1.095           

Calculate the initial deposit insurance assessment rate for each institution. (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.161))

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Calculate the initial deposit insurance assessment rate for
Reference No:- TGS02827154

Expected delivery within 24 Hours