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All requirements please Refer to Table 13-28. Onshore Bank has $34 million in assets, with risk-weighted assets of $24 million. Core Equity Tier 1 (CETI)
All requirements please
Refer to Table 13-28. Onshore Bank has $34 million in assets, with risk-weighted assets of $24 million. Core Equity Tier 1 (CETI) capital is $1,100,000. additional Tier I capital is $400.000, and Tier II capital is $428,000. The current value of the CET1 ratio is 4.58 percent, the Tier ratio is 6.25 percent, and the total capital ratio is 8.03 percent. Calculate the new value of CET1. Tier I, and total capital ratios for the following transactions. .. The bank repurchases $114.000 of common stock with cash. b. The bank issues $3.4 million of CDs and uses the proceeds to issue category 1 mortgage loans with a loan-to-value ratio of 80 percent. c. The bank receives $514.000 in deposits and invests them in T-bills. d. The bank issues $814.000 in common stock and lends it to help finance a new shopping mall. The developer has an A+ credit rating. e. The bank issues $2.4 million in nonqualifying perpetual preferred stock and purchases general obligation municipal bonds. f. Homeowners pay back $5.4 million of mortgages with loan-to-value ratios of 40 percent and the bank uses the proceeds to build new ATMs. Complete this question by entering your answers in the tabs below. Required A Required B Required Required Required E Required F The bank repurchases $114,000 of common stock with cash. (Round your percentage answers to 2 decimal places. (e.g. 32.16)) CET1 ratio % 96 Tier I ratio Total capital ratio 96 Refer to Table 13-28. Onshore Bank has $34 million in assets, with risk-weighted assets of $24 million. Core Equity Tier 1 (CETI) capital is $1,100,000. additional Tier I capital is $400.000, and Tier II capital is $428,000. The current value of the CET1 ratio is 4.58 percent, the Tier ratio is 6.25 percent, and the total capital ratio is 8.03 percent. Calculate the new value of CET1. Tier I, and total capital ratios for the following transactions. .. The bank repurchases $114.000 of common stock with cash. b. The bank issues $3.4 million of CDs and uses the proceeds to issue category 1 mortgage loans with a loan-to-value ratio of 80 percent. c. The bank receives $514.000 in deposits and invests them in T-bills. d. The bank issues $814.000 in common stock and lends it to help finance a new shopping mall. The developer has an A+ credit rating. e. The bank issues $2.4 million in nonqualifying perpetual preferred stock and purchases general obligation municipal bonds. f. Homeowners pay back $5.4 million of mortgages with loan-to-value ratios of 40 percent and the bank uses the proceeds to build new ATMs. Complete this question by entering your answers in the tabs below. Required A Required B Required Required Required E Required F The bank repurchases $114,000 of common stock with cash. (Round your percentage answers to 2 decimal places. (e.g. 32.16)) CET1 ratio % 96 Tier I ratio Total capital ratio 96Step by Step Solution
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