Aspiration Savings Association is considering funding a package of new loans in the amount of $400 million. Aspiration has projected that it must raise $450 million in order to have $400 million available to make new loans. It expects to raise $325 million of the total by selling time deposits at an average interest rate of 2.25 percent. Non Interest costs from selling time deposits will add an estimated 0.45 percent in operating expenses. Aspiration expects another $125 million to come from noninterest-bearing transaction deposits, whose non-interest costs are expected to be 3.25 percent of the total amount of these deposits. What is the Association’s projected pooled-funds marginal cost? What hurdle rate must it achieve on its earning assets?
somewhere you enjoy visiting. Write down the BHC ID of your selected bank. Then go to www4.fdic.gov/sdi/ to compare your small BHC with two larger BHCs—Bank of America (BHC ID 1073757) and J. P. Morgan Chase (BHC ID 1039502). Compare and contrast Deposits/Total Assets and Liabilities/Total Assets for the three BHCs to illustrate your point. If you need some help maneuvering around this site to create a report, read on. The process to create a report requires that you “Select the Number of Columns.” You want to select “3” to develop the format to collect data for the most recent report. This provides three pull-down menus, each labeled Select One. In the columns select Bank Holding Company from the menu and go on to type in the BHC ID #. After defining the three columns click on Next. At this point, you focus on Report Selection, choosing to View and to do calculations in Percentages. Then you get to identify the information you want to collect before creating the report by clicking Next. You will find deposit and liability information in the Assets and Liabilities report.
