Million Bank has a composite CAMELS rating of 2, a total risk-based capital rati
ID: 2527970 • Letter: M
Question
Million Bank has a composite CAMELS rating of 2, a total risk-based capital ratio of 9.8 percent, a Tier I risk-based capital ratio of 6.8 percent, a CET1 capital ratio of 6.0 percent, and a Tier I leverage ratio of 4.9 percent. The average total assets of the bank equal $500 million and average Tier I equity equal $24.5 million. What deposit insurance risk category does the bank fall into? What is the bank’s deposit insurance assessment rate and assuming the DIF reserve ratio is currently 1.18 percent, the dollar value of deposit insurance premiums?
Explanation / Answer
As per the CAMESL rating of 2 and capital ratios provided, Million Bank falls into Category II risk categor. The deposit insurance rate of 10 cents per $100.00 deposit.