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3. (4.0 points). This question has parts (a) and (b) The table below gives you information on Bank A assets (loans), assets weighted by risk,
3. (4.0 points). This question has parts (a) and (b) The table below gives you information on Bank A assets (loans), assets weighted by risk, and assets' specific provisions. Given this information and assuming Bank A has weighted minimum capital of 984,000, which exactly meets the capital adequacy ratio, (CAR) imposed by banking regulation, calculate and enter the value for the CAR a) CAR = b) Use the information from the table below and calculate and enter the amount of specific provisions that must be subtracted from Bank's A income statement: Specific Provisions = Loans Amount 1 2 2,000,000 5,000,000 5,000,000 3,000,000 Weighted- Risk 0.20 0.50 1.00 0.10 Specific Provisions 0.3 0.25 0.5 1
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