What is the maximum dollar amount

Assignment Help Other Subject

Reference no: EM132501107

BAF 421 Commercial Banking Management - Emirates College of Technology

Problem (1): Answer the following questions:

Abu Dhabi Commercial Bank (ADCB) has the following sources of funds: $300 million in capital and surplus, $325 million in demand deposits, $680 million in time and savings deposits, and $200 million in subordinated debt.
a.Explain with calculation what is the maximum dollar amount of real estate loans that ADCB can grant? (2.5 marks)

b.Explain with calculation what is the maximum dollar amount ADCB bank may lend to a single customer? (2.5 marks)

Problem (2): Answer the following question:

Describe the essential differences between the following deposit pricing methods in use today: cost-plus pricing, andconditional pricing.

Problem (3): Answer the following questions:

1. A customer wants to borrow $1,200 from Edmond State Bank. Edmond State Bank has an add-on loan with an interest rate of 12 percent and monthly payments for one year. What are the monthly payments this customer will need to make on this loan?

2. A customer wants to borrower $25,000 for one year from TRC State Bank. The bank offers a discount loan with an interest rate of 15 percent. How much of the loan will be available to the customer?

3. A customer is seeking a $150,000 home mortgage. The bank requires the customer to pay 1¾ points up front. How much of the loan amount will actually be available to the customer if the bank approves the loan?

Problem (4): Answer the following question:

A bank has determined the information below for one of its customers. This customer wants to borrow $1,000,000 but will maintain an average deposit balance in its account of $200,000. Calculate the expected net rate of return on this loan?

Reference no: EM132501107

Questions Cloud

HRM101 Human Resource Management Assignment : HRM101 Human Resource Management Assignment Help and Solution - Emirates College of Technology, UAE. Discuss way enhances the employees' satisfaction

Did you include transitional words and phrases : Did you include transitional words and phrases? Did you check for nominalizations? Passive Voice? Faulty Predications? Subject / Verb Agreements?

What are the gendered expectations shown in the film : Nicholas Kristof and Sheryl Wu Dunn wrote a bestselling and Pulitzer Prize winning book, Half the Sky. It was made into a documentary just this year.

CIS4017-N System Administration and Security Assignment : CIS4017-N System Administration and Security Assignment Help and Solution - Teesside University, UK. Part II - Security analysis and design

What is the maximum dollar amount : Describe the essential differences between the following deposit pricing methods in use today: cost-plus pricing, andconditional pricing

Write an executive summary of the proposal : Of the three programs that you have proposed, choose the one that you wish to present. In 250-500 words, write an executive summary of that proposal.

BAF 421 Commercial Banking Management Assignment : BAF 421 Commercial Banking Management Assignment help and Solution, Emirates College of Technology - Assessment Writing Service

What tips can you take from the case study : What tips can you take from the case study and the Reading to improve your team leadership skills? How case study add to or change your thoughts on leadership

Write opening statement describing the perception of threat : Write an opening statement describing the perception of the threat. Write one page giving three reasons that explain why you saw this threat as less critical.

User Account

All Pages