Question
2. Suppose a US bank has $775 billion in total assets. Suppose also that the the bank's assets are distributed among asset risk weight categories
2. Suppose a US bank has $775 billion in total assets. Suppose also that the the bank's assets are distributed among asset risk weight categories the following way : $200 billion in zero weight risk category, $75 billion in .2 risk weight category, $225 billion in .5 risk weight category, and $275 billion in 1 risk weight category. Based information, calculate the amounts this bank has to set aside to meet the following capital requirements imposed by US bank regulators: the leverage ratio capital requirement, the risk adjusted capital requirement.
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