Question
A banks balance sheet information is shown below (in $000). On Balance Sheet Items Face Value Cash $ 131,600 Short-term government securities ( <92 days)
A banks balance sheet information is shown below (in $000).
| On Balance Sheet Items | Face Value | ||
| Cash | $ | 131,600 |
|
| Short-term government securities (<92 days) |
| 6,400 |
|
| Long-term government securities (>92 days) |
| 424,400 |
|
| Federal Reserve stock |
| 10,800 |
|
| Repos secured by federal agencies |
| 169,000 |
|
| Claims on U.S. depository institutions |
| 947,900 |
|
| Loans to foreign banks, OECD CRC rated 2 |
| 1,740,000 |
|
| General obligation municipals |
| 180,000 |
|
| Claims on or guaranteed by federal agencies |
| 27,500 |
|
| Municipal revenue bonds |
| 122,900 |
|
| Residential mortgages, category 1, loan-to-value ratio 75% |
| 6,000,000 |
|
| Commercial loans |
| 5,667,669 |
|
| Loans to sovereigns, OECD CRC rated 3 |
| 12,600 |
|
| Premises and equipment |
| 465,000 |
|
| Off Balance Sheet Items: | Conversion Factor (%) | Face Value | |||
| U.S. Government Counterparty |
|
|
|
|
|
| Loan commitments: |
|
|
|
|
|
| <1 year | 20 |
| $ | 300 |
|
| 15 year | 50 |
|
| 1,140 |
|
| Standby letters of credit: |
|
|
|
|
|
| Performance-related | 50 |
|
| 200 |
|
| Direct-credit substitute | 100 |
|
| 100 |
|
| U.S. Depository Institutions Counterparty |
|
|
|
|
|
| Loan commitments: |
|
|
|
|
|
| <1 year | 20 |
|
| 100 |
|
| >1 year | 50 |
|
| 3,000 |
|
| Standby letters of credit: |
|
|
|
|
|
| Performance-related | 50 |
|
| 200 |
|
| Direct-credit substitute | 100 |
|
| 56,400 |
|
| Commercial letters of credit: | 20 |
|
| 400 |
|
| State and Local Government Counterparty (revenue municipals) |
|
|
|
|
|
| Loan commitments: |
|
|
|
|
|
| >1 year | 50 |
|
| 100 |
|
| Standby letters of credit: |
|
|
|
|
|
| Performance-related | 50 |
|
| 135,400 |
|
| Corporate Customer Counterparty |
|
|
|
|
|
| Loan commitments: |
|
|
|
|
|
| <1 year | 20 |
|
| 3,212,400 |
|
| >1 year | 50 |
|
| 3,046,278 |
|
| Standby letters of credit: |
|
|
|
|
|
| Performance-related | 50 |
|
| 101,543 |
|
| Direct-credit substitute | 100 |
|
| 490,900 |
|
| Commercial letters of credit: | 20 |
|
| 78,978 |
|
| Sovereign Counterparty |
|
|
|
|
|
| Loan commitments, OECD CRC rated 1: |
|
|
|
|
|
| <1 year | 20 |
|
| 110,500 |
|
| >1 year | 50 |
|
| 1,225,400 |
|
| Sovereign Counterparty |
|
|
|
|
|
| Loan commitments, OECD CRC rated 2: |
|
|
|
|
|
| <1 year | 20 |
|
| 85,000 |
|
| >1 year | 50 |
|
| 115,500 |
|
| Sovereign Counterparty |
|
|
|
|
|
| Loan commitments, OECD CRC rated 7: |
|
|
|
|
|
| >1 year | 50 |
|
| 30,000 |
|
| Interest rate market contracts (current exposure assumed to be zero): |
|
|
|
|
|
| <1 year (notional amount) | 0 |
|
| 2,000 |
|
| >15 year (notional amount) | 0.5 |
|
| 5,000 |
|
What is the banks risk-adjusted asset base? (Round your answer to the nearest whole dollar amount. (e.g., 32))
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