FIN320 - 12

Depositors need to be protected against poor decisions by management (board of directors).

Institutions are required to put aside a minimum of 8% of capital for risk-weighted assets

• - Industry characteristics 
• - Management evaluation 
• - Industry specific factors
• - Financial risk

• - Accounting quality
• - Financial policy
• - Profitability and coverage
• - Capital structure/leverage and asset protection 
• - Financing off the statement of financial position 
• - Preferred stock
• - Cashflow adequacy and ratios 
• - The need for capital
• - Financial flexibility

Clean sale supply of goods

Revolving facilities