BF101 Revision Questions 1. Are the non banks important in a well functioning financial system? 2.

Briefly distinguish between the formal and informal financial sectors. 3. Briefly describe examples of financial markets and financial instruments. 4. Do you think the PICs are doing well in terms of financial sector development? Clearly explain your answer. 5. Provide brief notes on objectives of regulation and the basic regulatory models 6. Based on the following information a) Construct the income statement and balance sheet for FBE banks for years 2011 and 2012. b) Comment on the performance of FBE Banks under the following aspects: I. Profitability II. Asset growth and quality III. Capital adequacy FBE Banks Account balances 2012 Income Statement account balances Interest Income 9087 Interest expense 4519 Provision fo Loan Loss 1003 Non Interest Income 4658 Non Interest Expense 4849 Income tax expense 1339 Balance Sheet Account balances long term debt 76037 other earning assets 39112 cash 32575 Shareholders equity 72198 Loan and leases 683386 deposits 410420 short term borrowing 128171 Securities 79854 other liabilities 148101 2011 9131 3216 985 4157 4479 1507

76934 37924 30558 73847 644472 382107 116002 80837 144901