2. The credit risk exposure of the bank is another issue that needs attention. Unibank obtained the following data regarding the national average exposure of all banks and one competitor bank that serves the same target markets as Unibank: Sectors National UniBank Competitor Bank average of all banks 50% 30% 10% 10% Small business 25% Consumer loans Housing loans 30% Corporate loans UniBank would like to estimate how much its loan portfolio deviate from the national average compared to the portfolio of the competitor bank. You are requested to calculate how much the loan portfolios of UniBank and the competitor bank deviate from the national average and to explain whether the deviation of UniBank is better or worse than the deviation of the competitor bank by providing reasons for it. 10% 20% 0% 20% 60% 35%

2. The credit risk exposure of the bank is another issue that needs attention. Unibank obtained the following data regarding the national average exposure of all banks and one competitor bank that serves the same target markets as Unibank: Sectors National UniBank Competitor Bank average of all banks 50% 30% 10% 10% Small business 25% Consumer loans Housing loans 30% Corporate loans UniBank would like to estimate how much its loan portfolio deviate from the national average compared to the portfolio of the competitor bank. You are requested to calculate how much the loan portfolios of UniBank and the competitor bank deviate from the national average and to explain whether the deviation of UniBank is better or worse than the deviation of the competitor bank by providing reasons for it. 10% 20% 0% 20% 60% 35%

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 13QTD

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