1. What is the difference between a. and a. What are Citizens’ two largest asset categories? What is the largest liability category? What do these assets and liabilities indicate about the major services offered by Citizens? Citizens’ two largest asset categories are loans and leases and net loans and leases. The largest liability category is deposits. These assets and liabilities indicate that Citizens’ Bank provides a variety of banking services such as consumer loans, savings accounts, and mortgages.
2. What is the difference between a'smart' and a'smart'? What are the largest interest income and interest expense categories for Citizens? Is this consistent with your results from the balance sheet (question 1)? EXPLAIN. The.
The largest…show more content… I got the net interest income from taking 201,686 – 150,323. The Net Interest Margin in 2022 was 73,745 / 194,136, equaling 0.3798. I got the net interest income from taking 194,136 – 134,053. Assuming that a Citizen’s assets are more rate sensitive than its liabilities, with an increase in interest rates, the income from assets will increase faster at a higher rate than the payment on liabilities. This affects the net interest margin by increasing it since the income will be…show more content… What is the difference between a.. What role does capital play for a depository financial institution? Explain the adage of the adage. CALCULATE the level of capital held by citizens for 2023 and 2022 (SHOW ALL CALCULATIONS!). Is the firm stronger or weaker on this measure in 2023? EXPLAIN WHY. Hint: Compare the level of Capital to Total Assets each year- calculate ratios. “Bank capital performs several very important functions. It absorbs losses, promotes public confidence, helps restrict excessive asset growth, and provides protection to depositors and the deposit insurance fund” (FDIC | Banker Resource Center: Regulatory Capital). The total equity held in 2023 was 23,606. The total equity held in 2022 was 23,738. Taking the total equity and dividing it by the total assets of the same year. In 2023, 23,606 / 222,221, equals 0.106. In 2022, 23,738 / 215,061, equaling 0.11. The firm measured weaker in 2023 than in 2022. The capital to assets ratio will be higher in
