1) Which methods of regulation of banks would be suitable for regional banks and money centre banks? Explain why? Estimate the methods which is used to manage liquidity by banks.
2) Explain the methods used by banks to manage interest rate risk? Which method do you think to is the most effective? Explain why? If the bank earns $ 168 million net profit after tax and has $ 17 billion invested in assets, determine its return on assets?
3) Describe the pros and cons of using the examination of return on assets as part of process to estimate bank performance. How do sources and uses of funds by thrifts vary from those used by commercial banks? Compare the kinds of finance companies.
4) Explain how are mutual funds managed? Assume a bank earns $ 200 million in interest revenue but pays 156 million in interest expense. It also has $ 801 million in earning assets. What is the net interest margin?
5) If the bank earns $ 70 million net profit after tax and has $ 7.5 billion invested in assets and $ 602 million equity investment, find out its return on equity?
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