On average, the equity capital of an S&L makes up only about 3 to 4 percent of its total funds sources.

Question

Quizplus · Accepted Answer

Savings and Loan Associations (S&Ls) typically maintain a lower equity capital ratio, with equity capital often representing only about 3 to 4 percent of their total funding sources. This is in contrast to other types of financial institutions that might have higher equity capital ratios. The reliance on debt and other forms of borrowing is more pronounced in S&Ls, reflecting their business model and regulatory environment.

On Average, the Equity Capital of an S&L Makes Up