X-Bank reported an ROE of 15% and an ROA of 1%. How well capitalized is this bank?


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X-Bank reported an ROE of 15% and an ROA of 1%. How well capitalized is this bank? 1 answer below ยป 1. The balance sheet of TriBank starts with an allowance for loan losses of $1.33 million. During the year, TriBank charges off worthless loans of $0.84 million, recovers $0.22 million on loans previously charged off, and charges current income for a $1.48 million provision for loan losses. Calculate the end-of-year allowance for loan losses. 2. X-Bank reported an ROE of 15% and an ROA of 1%. How well capitalized is this bank? Jul 08 2014 12:39 PM

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