8). If a bank finds its ROE too low because it has too much bank capital, what can it do to increase its ROE?
(5 marks)
9). What are the benefits and costs for a bank when it decides to increase its total bank capital?
(5 marks)
10) Given the following balance sheet:
Assets (RM) Liabilities (RM)
Statutory reserves 17 million Deposits 205 million
Surplus reserves 3 million Capital 10 million
Private bond 65 million
Housing loans 70 million
Commercial loan of 60 million
Statutory reserves and surplus reserves have zero weights. Private bonds and housing loans have a 50 percent weight, while commercial loans have a 100 percent weight. Calculate the value of risk -weighted assets.
(10 marks)
11) Explain FIVE similarities and differences between Islamic banking and conventional banking.
(15 marks)
12) Describe two similarities and two differences between the 1997 Asian Financial Crisis and the 2007 Global Financial Crisis.
(10 marks)