National Bank has the following balance sheet (in millions)
and has no off-balance-sheet activities. (LG 13-7)
Assets Liabilities and Equity Cash $ 20 Deposits $ 980 Treasury bills 40 Subordinated debentures 25 Residential mortgages
(category 1;
loan-to-value ratio = 70%) 600 Common stock 45 Retained earnings 40 Total liabilities and equity $1,090 Business loans 430 Total assets $1,090 a. What is the CET1 risk-based ratio?
b. What is the Tier I risk-based capital ratio?
c. What is the total risk–based capital ratio?
d. What is the Tier I leverage ratio?
e. In what capital risk category would National Bank be placed?

AppendixLO1