The following balance sheet accounts (in millions of dollars) have been taken fr
ID: 1174738 • Letter: T
Question
The following balance sheet accounts (in millions of dollars) have been taken from the annual report for a U.S. bank. Arrange the accounts in balance sheet order and determine the value of total assets. Based on the balance sheet structure, would you classify this bank as a community bank, regional bank, or a money center bank? (LG 11-6)
Premises
$1,078
Net loans
$29,981
Savings deposits
3,292
Short-term borrowing
2,080
Cash
2,660
Other liabilities
778
NOW accounts
12,816
Equity
3,272
Long-term debt
1,191
Investment securities
5,334
Other assets
1,633
Demand deposits
5,939
Intangible assets
758
Certificates of deposit (under $100,000)
9,853
Other time deposits
2,333
Federal funds sold
110
Premises
$1,078
Net loans
$29,981
Savings deposits
3,292
Short-term borrowing
2,080
Cash
2,660
Other liabilities
778
NOW accounts
12,816
Equity
3,272
Long-term debt
1,191
Investment securities
5,334
Other assets
1,633
Demand deposits
5,939
Intangible assets
758
Certificates of deposit (under $100,000)
9,853
Other time deposits
2,333
Federal funds sold
110
Explanation / Answer
It is a community bank because its assets are below $1 billion in assets.
It would be a regional bank if assets are more than $1 billion and money center bank if assets are more than $1 trillion.
Assets Amount Liability Cash 2660 Savings 3292 Investment Securities 5334 other time deposits 2333 Net Loans 29981 Demand Deposits 5939 Premises 1078 Certificate of Deposits 9853 Other Assets 1633 Long term Debt 1191 Intangible Assets 758 Short Term Debt 2080 NOW Accounts 12816 Other Liabilities 778 Total 54260 Fed Funds 110 Equity 3272Related Questions
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