Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A banks balance sheet information is shown below (in $000). To be adequately capitalized, what are the banks CET1, Tier I, and total riskbased capital

A banks balance sheet information is shown below (in $000).

image text in transcribed

image text in transcribed

image text in transcribed

To be adequately capitalized, what are the banks CET1, Tier I, and total riskbased capital requirements under Basel III? (Round your answers to the nearest whole dollar amount. (e.g., 32))

image text in transcribed

On-Balance-SheetItemsCashShort-termgovernmentsecurities(92days)FederalReservestockRepossecuredbyfederalagenciesClaimsonU.S.depositoryinstitutionsLoanstoforeignbanks,OECDCRCrated2GeneralobligationmunicipalsClaimsonorguaranteedbyfederalagenciesMunicipalrevenuebondsResidentialmortgages,category1,loan-to-valueratio75%CommercialloansLoanstosovereigns,OECDCRCrated3PremisesandequipmentFaceValue$138,6007,100431,40011,500176,000954,9001,810,000187,00028,200129,9006,700,0006,367,66913,300472,000 Sovereign Counterparty Loan commitments, OECD CRC rated 7 : >1 year Interest rate market contracts (current exposure assumed to be zero): 15 year (notional amount) \begin{tabular}{|l|l|} \hline & \\ \hline CET1 capital & \\ \hline Tier I capital & \\ \hline Total risk-based capital & \\ \hline \end{tabular} On-Balance-SheetItemsCashShort-termgovernmentsecurities(92days)FederalReservestockRepossecuredbyfederalagenciesClaimsonU.S.depositoryinstitutionsLoanstoforeignbanks,OECDCRCrated2GeneralobligationmunicipalsClaimsonorguaranteedbyfederalagenciesMunicipalrevenuebondsResidentialmortgages,category1,loan-to-valueratio75%CommercialloansLoanstosovereigns,OECDCRCrated3PremisesandequipmentFaceValue$138,6007,100431,40011,500176,000954,9001,810,000187,00028,200129,9006,700,0006,367,66913,300472,000 Sovereign Counterparty Loan commitments, OECD CRC rated 7 : >1 year Interest rate market contracts (current exposure assumed to be zero): 15 year (notional amount) \begin{tabular}{|l|l|} \hline & \\ \hline CET1 capital & \\ \hline Tier I capital & \\ \hline Total risk-based capital & \\ \hline \end{tabular}

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Financial Management

Authors: Sudanshu Pandeya

1st Edition

1774695316, 978-1774695319

More Books

Students also viewed these Finance questions

Question

10. What is meant by a feed rate?

Answered: 1 week ago