Question
A bank has total assets of $3 billion, including cash of $1 billion and loan portfolio of $2 billion. The loan portfolio is comprised of
A bank has total assets of $3 billion, including cash of $1 billion and loan portfolio of $2 billion. The loan portfolio is comprised of 40% personal loans, 30% auto loans, and 30% small business loans. Personal loans are assigned a risk weight of 100%, auto loans are assigned a risk weight of 50%, and small business loans are assigned a risk weight of 75%. What is the bank's total risk-weighted assets ?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To calculate the banks total riskweighted assets we need to multiply the value of each type of loan ...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
