Two depository institutions have composite camels ratings


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

Institution 1 Institution 2
Tier I leverage ratio (%) 10.25 7.00
Loans past due 30-89 days/gross assets (%) 0.60 0.82
Nonperforming assets/gross assets (%) 0.45 0.90
Net loan charge-offs/gross assets (%) 0.08 0.25
Net income before taxes/risk-weighted assets (%) 2.40 1.65

CAMELS components:
C 1 2
A 1 1
M 1 1
E 2 1
L 1 3
S 2 3

Calculate the deposit insurance assessment for each institution.

 

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Finance Basics: Two depository institutions have composite camels ratings
Reference No:- TGS0632881

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