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2. The following balance sheet assets for a bank are available in actual dollars)- Assets Cash Deposits at domestic banks Municipal securities Foreign Government securities
2. The following balance sheet assets for a bank are available in actual dollars)- Assets Cash Deposits at domestic banks Municipal securities Foreign Government securities Consumer loans outstanding Commercial loans outstanding Total assets (on balance-sheet) Off-balance sheet Assets: Short-term unused loan commitments to - Individuals Long-term unused loan commitments to - Private corporations $5,000,000 2,000,000 10,000,000 3,000,000+ 20,000,000 50,000,000 $ 90,000,000 t 5,000,000 30,000,000 t (a) Calculate the bank's total risk-weighted assets (RWA). (24 points) + t t tt (b) The Tier I capital is $4,400,000 and Tier II capital is $4,400,000.- I. Calculate Tier I capital ratio to RWA. (2 points) t II. Calculate total capital ratio to RWA. (2 points 2. The following balance sheet assets for a bank are available in actual dollars)- Assets Cash Deposits at domestic banks Municipal securities Foreign Government securities Consumer loans outstanding Commercial loans outstanding Total assets (on balance-sheet) Off-balance sheet Assets: Short-term unused loan commitments to - Individuals Long-term unused loan commitments to - Private corporations $5,000,000 2,000,000 10,000,000 3,000,000+ 20,000,000 50,000,000 $ 90,000,000 t 5,000,000 30,000,000 t (a) Calculate the bank's total risk-weighted assets (RWA). (24 points) + t t tt (b) The Tier I capital is $4,400,000 and Tier II capital is $4,400,000.- I. Calculate Tier I capital ratio to RWA. (2 points) t II. Calculate total capital ratio to RWA. (2 points
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