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A Bank has the following balance sheet (in millions) and has no off-balance-sheet activities Assets Liabilities and Equity Treasury Bills 30 Deposits 980 Long-term Treasury
A Bank has the following balance sheet (in millions) and has no off-balance-sheet activities
Assets | Liabilities and Equity |
Treasury Bills 30 | Deposits 980 |
Long-term Treasury securities 10 | Subordinated bonds 20 |
Residential mortgages 600 | Convertible bonds 20 |
Commercial loans (AA+ rated) 105 | Perpetual preferred stock (nonqualifying) 5 |
Business loans (BB+ rated) 210 | Perpetual preferred stock (qualifying) 10 |
Commercial loans (CCC+ rated) 130 | Common stock 40 |
Cash 20 | Retained Earnings 30 |
Total Assets 1,105 | Total liabilities and equity 1,105 |
What are the Risk Weighted Assets? What is the Tier I capital ratio? What is the Tier II capital ratio? What is the total capital of the bank? What is the capital adequacy ratio?
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