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 & 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

& Total RiskBased Capital Requirements under Basel III?

Provide an EXCEL file with detailed calculations.

PLEASE HELP!!! MANY THUMBS UP FOR HELP!!!

THANK YOU :)

On Balance Sheet Items Face Value Cash $ 121,600 Short-term government securities (92 days) 414,400 Federal Reserve stock 9,800 Repos secured by federal agencies 159,000 Claims on U.S. depository institutions 937,900 Loans to foreign banks, OECD CRC rated 2 1,640,000 General obligation municipals 170,000 Claims on or guaranteed by federal agencies 26,500 Municipal revenue bonds 112,900 Residential mortgages, category 1, loan-to-value ratio 75% 5,000,000 Commercial loans 4,667,669 Loans to sovereigns, OECD CRC rated 3 11,600 Premises and equipment 455,000 Conversion Factor (%) Face Value 20 $ 50 300 1,140 Off Balance Sheet Items: U.S. Government Counterparty Loan commitments: 1 year Standby letters of credit: Performance-related 50 200 100 100 20 50 100 3,000 50 200 100 20 56,400 400 50 100 50 135,400 20 3,212,400 3,046,278 50 50 100 Direct-credit substitute Commercial letters of credit State and Local Government Counterparty (revenue municipals) Loan commitments: >1 year 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: >1 year Interest rate market contracts (current exposure assumed to be zero): 15 year (notional amount) 101,543 490,900 78,978 20 20 50 110,500 1,225,400 20 85,000 115,500 50 50 30,000 0 0.5 2,000 5,000 On Balance Sheet Items Face Value Cash $ 121,600 Short-term government securities (92 days) 414,400 Federal Reserve stock 9,800 Repos secured by federal agencies 159,000 Claims on U.S. depository institutions 937,900 Loans to foreign banks, OECD CRC rated 2 1,640,000 General obligation municipals 170,000 Claims on or guaranteed by federal agencies 26,500 Municipal revenue bonds 112,900 Residential mortgages, category 1, loan-to-value ratio 75% 5,000,000 Commercial loans 4,667,669 Loans to sovereigns, OECD CRC rated 3 11,600 Premises and equipment 455,000 Conversion Factor (%) Face Value 20 $ 50 300 1,140 Off Balance Sheet Items: U.S. Government Counterparty Loan commitments: 1 year Standby letters of credit: Performance-related 50 200 100 100 20 50 100 3,000 50 200 100 20 56,400 400 50 100 50 135,400 20 3,212,400 3,046,278 50 50 100 Direct-credit substitute Commercial letters of credit State and Local Government Counterparty (revenue municipals) Loan commitments: >1 year 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: >1 year Interest rate market contracts (current exposure assumed to be zero): 15 year (notional amount) 101,543 490,900 78,978 20 20 50 110,500 1,225,400 20 85,000 115,500 50 50 30,000 0 0.5 2,000 5,000

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

Fundamental Managerial Accounting Concepts

Authors: Edmonds, Tsay, olds

6th Edition

71220720, 78110890, 9780071220729, 978-0078110894

More Books

Students also viewed these Accounting questions