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4) A bank recently reported a ROE of 40% and ROA of 1%. 5 a) Calculate the Capital Ratio for the bank. Show work: CAn=RiskadjustedassetsRegulatoryCapital

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4) A bank recently reported a ROE of 40% and ROA of 1%. 5 a) Calculate the Capital Ratio for the bank. Show work: CAn=RiskadjustedassetsRegulatoryCapital 25 b) Is this bank well capitalized under non-risk based capital requirements? Explain. 2.5 c) How wouid financial regulators view this capital level? What could the bank do? 4) A bank recently reported a ROE of 40% and ROA of 1%. 5 a) Calculate the Capital Ratio for the bank. Show work: CAn=RiskadjustedassetsRegulatoryCapital 25 b) Is this bank well capitalized under non-risk based capital requirements? Explain. 2.5 c) How wouid financial regulators view this capital level? What could the bank do

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