1. National Bank has the following balance sheet (in millions) and has no off-balance-sheet activities. Assets Liabilities...

Question:

1. National Bank has the following balance sheet (in millions) and has no off-balance-sheet activities.

Assets Liabilities and Equity Cash $ 20 Deposits $ 980 Treasury bills 40 Subordinated debentures 40 Residential mortgages 600 Common stock 40 Business loans (BB rated) 430 Retained earnings 30 Total assets $1,090 Total liabilities and equity $1,090 What is the leverage ratio?

What is the Tier I capital ratio?

What is the total risk–based capital ratio?

In what capital category would the bank be placed?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: