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A banks balance sheet information is shown below (in $000). On Balance Sheet Items Cash Short-term government securities (1 year 50 100 50 135, 400
A banks balance sheet information is shown below (in $000).
On Balance Sheet Items Cash Short-term government securities (1 year 50 100 50 135, 400 Standby letters of credit: Performance-related Corporate Customer Counterparty Loan commitments: (1 year >1 year 20 50 3, 212, 400 3,046, 278 Standby letters of credit: Performance-related Direct-credit substitute Commercial letters of credit Sovereign counterparty Loan commitments, OECD CRC rated 1: 50 100 20 101, 543 490, 900 78, 978 (1 year >1 year 20 50 110, 500 1, 225, 400 Sovereign counterparty Loan commitments, OECD CRC rated 2: (1 year >1 year 20 50 85,000 115,500 Sovereign counterparty Loan commitments, OECD CRC rated 7: >1 year 50 30,000 Interest rate market contracts (current exposure assumed to be zero): 1-5 year (notional amount) 0 0.5 2,000 5,000 To be adequately capitalized, what are the bank's CET1, Tier I, and Tier II requirements under Basel III? (Round your answer to the nearest whole dollar amount. (e.g., 32)) CET1 capital Tier I capital Tier II capital On Balance Sheet Items Cash Short-term government securities (1 year 50 100 50 135, 400 Standby letters of credit: Performance-related Corporate Customer Counterparty Loan commitments: (1 year >1 year 20 50 3, 212, 400 3,046, 278 Standby letters of credit: Performance-related Direct-credit substitute Commercial letters of credit Sovereign counterparty Loan commitments, OECD CRC rated 1: 50 100 20 101, 543 490, 900 78, 978 (1 year >1 year 20 50 110, 500 1, 225, 400 Sovereign counterparty Loan commitments, OECD CRC rated 2: (1 year >1 year 20 50 85,000 115,500 Sovereign counterparty Loan commitments, OECD CRC rated 7: >1 year 50 30,000 Interest rate market contracts (current exposure assumed to be zero): 1-5 year (notional amount) 0 0.5 2,000 5,000 To be adequately capitalized, what are the bank's CET1, Tier I, and Tier II requirements under Basel III? (Round your answer to the nearest whole dollar amount. (e.g., 32)) CET1 capital Tier I capital Tier II capitalStep by Step Solution
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