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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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