There are known the following data for commercial banks credit investments into

Question

There are known the following data for commercial banks credit investments into two industry sectors:

Industry sector

Credit discharge value, total (mln.USD) C

Average credit rests, mln.USD.    _

                                                  K

Base year

Reporting year

Base year

Reporting year

I

32,5

42,4

5,9

6,2

II

34,4

38,4

2,1

3,3

Find (in mln.USD) the change of total credit discharge value; its change due to change of the credit turnover rate, and due to the change of average credit rests.

                          _

m=C/days n=C/K  

Industry sector

Credit discharge value, total (mln.USD) C

Average credit rests, mln.USD.    _

                                                  K

Base year

Reporting year

Base year

Reporting year

I

32,5

42,4

5,9

6,2

II

34,4

38,4

2,1

3,3

Explanation / Answer

C-credit discharge value

K-average credit rests

m=C/days

n=C/K

Credit discharge value=actual discharge/theoritical discharge

credit discharge=reporting year value/base year value

42/35=1.29 (for sector 1)

38/34=1.117(for sector 2)

A high credit turnover ratio is desirable.

average credit rests(K)= In both industries the amount of change in credit rests is 1 .

so the change is 1+1/2=1

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