Simulation
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Definitions
Analysis (*2x*)
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Discussion
Real Bank Data
At the end of specific turns, if you bank's performance meets certain target levels, you earn a "free-trade". The performance targets for specific turns are:
6) At the end-of-turn 6 have percentage of loans that are variable rate >= 60% (of total loans)
7) At the end-of-turn 7 have balance sheet optionality be <= 25% (of total assets)
8) At the end-of-turn 8 have a higher Margin than your Rival
9) At the end-of-turn 9 have your IRR stress-test for earnings show a benefit to falling rates (i.e. + DN)
10) At the end-of-turn 10:
a) have loan concentration of <= 25% (of total loans)
b) have lower Rate Risk than you Rival.
11) At the end-of-turn 11 have Risk-based Capital Level of >= 13.50%