Question

Two depository institutions have composite CAMELS ratings of 1 or 2 and are ‘well capitalized.’ Thus, each institution falls into the FDIC Risk Category I deposit insurance assessment scheme. Further, the institutions have the following financial ratios and CAMELS ratings: Use Table.

	Institution 1			Institution 2
Tier I leverage ratio (%)		8.71			7.84
Loans past due 30–89 days/gross assets (%)		0.54			0.65
Nonperforming assets/gross assets (%)		0.44			0.59
Net loan charge-offs/gross assets (%)		0.37			0.41
Net income before taxes/risk-weighted assets (%)		2.24			1.95
Adjusted brokered deposits ratio (%)		0.00			15.65
CAMELS components:
C		1			1
A		1			2
M		2			1
E		2			3
L		2			1
S		1			1

	Pricing Multiplier
Uniform Amount	4.861
Tier I leverage ratio (%)	(0.056)
Loans past due 30-89 days/gross assets (%)	0.575
Nonperforming assets/gross assets (%)	1.074
Net loan charge-offs/gross assets (%)	1.210
Net income before taxes/risk-weighted assets (%)	(0.764)
Adjusted brokered deposits ratio (%)	0.065
Weighted average CAMELS component ratings	1.095

Calculate the initial deposit insurance assessment rate for each institution. (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.161))

	Institution 1	Institution 2
Initial assessment rate

Answer 1