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21. Consider a bank with the following balance sheet: The bank makes a loan commitment for $10...

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21. Consider a bank with the following balance sheet:

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The bank makes a loan commitment for $10 million to a commercial customer. Calculate the bank’s capital ratio before and after the agreement. Calculate the bank’s risk-weighted assets before and after the agreement.
Problems 22 through 24 relate to a sequence of transactions at Oldhat Financial.

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Assets Liabilities Desired $8 Chequable reserves million deposits $100 million Excess $3 Bank capital $6 reserves million million T-bills $45 million Commercial $50 loans million

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