Answered step by step
Verified Expert Solution
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).
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))
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
Get Instant Access to Expert-Tailored 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