Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
A bank's balance sheet information is shown below (in $000). On Balance Sheet Items Cash Short-term government securities (92 days) Federal Reserve stock Repos secured
A bank's balance sheet information is shown below (in $000). On Balance Sheet Items Cash Short-term government securities (92 days) Federal Reserve stock Repos secured by federal agencies Claims on u.s. depository institutions Loans to foreign banks, OECD CRC rated 2 General obligation municipals Claims on or guaranteed by federal agencies Municipal revenue bonds Residential mortgages, category 1, loan-to-value ratio 75% Commercial loans Loans to sovereigns, OECD CRC rated 3 Premises and equipment Face Value $ 121,600 5,400 414, 400 9,800 159,000 937,900 1,640,000 170,000 26,500 112,900 5,000,000 4,667,669 11,600 455,000 Conversion Factor (%) Face Value Off Balance Sheet Items: U.S. Government counterparty Loan commitments: $ 1 year 100 3,000 Standby letters of credit: Performance-related Direct-credit substitute Commercial letters of credit State and Local Government Counterparty (revenue municipals) Loan commitments: 50 100 20 200 56,400 400 >1 year 50 100 50 135, 400 20 50 3,212,400 3,046,278 50 100 20 101,543 490,900 78,978 Standby letters of credit: Performance-related Corporate Customer Counterparty Loan commitments: 1 year Standby letters of credit: Performance-related Direct-credit substitute Commercial letters of credit Sovereign counterparty Loan commitments, OECD CRC rated 1: 1 year Sovereign counterparty Loan commitments, OECD CRC rated 2: 1 year Sovereign counterparty Loan commitments, OECD CRC rated 7: 20 50 110,500 1,225,400 20 50 85,000 115,500 >1 year 50 30,000 Interest rate market contracts (current exposure assumed to be zero): 1-5 year (notional amount) 0 0.5 2,000 5,000 What is the bank's risk-adjusted asset base? (Round your answer to the nearest whole dollar amount. (e.g., 32)) Risk-adjusted asset base A bank's balance sheet information is shown below (in $000). On Balance Sheet Items Cash Short-term government securities (92 days) Federal Reserve stock Repos secured by federal agencies Claims on u.s. depository institutions Loans to foreign banks, OECD CRC rated 2 General obligation municipals Claims on or guaranteed by federal agencies Municipal revenue bonds Residential mortgages, category 1, loan-to-value ratio 75% Commercial loans Loans to sovereigns, OECD CRC rated 3 Premises and equipment Face Value $ 121,600 5,400 414, 400 9,800 159,000 937,900 1,640,000 170,000 26,500 112,900 5,000,000 4,667,669 11,600 455,000 Conversion Factor (%) Face Value Off Balance Sheet Items: U.S. Government counterparty Loan commitments: $ 1 year 100 3,000 Standby letters of credit: Performance-related Direct-credit substitute Commercial letters of credit State and Local Government Counterparty (revenue municipals) Loan commitments: 50 100 20 200 56,400 400 >1 year 50 100 50 135, 400 20 50 3,212,400 3,046,278 50 100 20 101,543 490,900 78,978 Standby letters of credit: Performance-related Corporate Customer Counterparty Loan commitments: 1 year Standby letters of credit: Performance-related Direct-credit substitute Commercial letters of credit Sovereign counterparty Loan commitments, OECD CRC rated 1: 1 year Sovereign counterparty Loan commitments, OECD CRC rated 2: 1 year Sovereign counterparty Loan commitments, OECD CRC rated 7: 20 50 110,500 1,225,400 20 50 85,000 115,500 >1 year 50 30,000 Interest rate market contracts (current exposure assumed to be zero): 1-5 year (notional amount) 0 0.5 2,000 5,000 What is the bank's risk-adjusted asset base? (Round your answer to the nearest whole dollar amount. (e.g., 32)) Risk-adjusted asset base
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started