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A depository institution that has the following assets with weights as indicated: $750 million in commercial loans with one to three years maturity (100%); $50

A depository institution that has the following assets with weights as indicated:

$750 million in commercial loans with one to three years maturity (100%);

$50 million in long term treasuries (0%);

$500 million loans secured by first mortgages (50%);

$500 million in mortgage backed securities guaranteed by government agencies (20%);

$250 million in consumer loans (100%); and

$25 million in loans that are 90 days or more past due (150%).

a. How much Common Equity Tier 1 capital must the depository institution have to be considered adequately capitalized?

b. How much Tier 1 capital must the depository institution have to be considered adequately capitalized?

c. How much total Tier 1 and Tier 2 capital must the depository institution have to be considered adequately capitalized?

d. Assume the depository has Tier 1 capital as determined in part a, what is the maximum amount of total liabilities the depository institution can have and be considered adequately capitalized according to the Tier 1 leverage ratio.

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