We're moving towards the end of our exercise. You've read the sections related to liquidity, sensitivity to market risk, asset quality, and earnings, and by now you should have developed a good idea as to what this bank's risk profile looks like. We know that they have weak earnings, and because of lax management, they have developed asset quality problems associated with inadequately controlled growth and substandard credit administration. We know what the exposures are, so we're ready to rate capital. We will begin with the Instructional Content component of the capital exercise.

<< Previous | SF Directors College Home | Next >>