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ASSETS Amount ($) Risk Weight Risk Weighted Assets Amount Cash & Treasury Securities $2,000 0% Repurchase Agreements 1000 20% 200 Municipal Bonds 1500 20% 300
ASSETS
Amount ($)
Risk Weight
Risk Weighted Assets Amount
Cash & Treasury Securities
$2,000
0%
Repurchase Agreements
1000
20%
200
Municipal Bonds
1500
20%
300
Single Family Home Mortgages
2700
50%
1350
CMOs
2500
50%
Commercial Loans
1500
100%
1500
Agricultural loans
2100
100%
Bank Buildings
2000
100%
2000
TOTAL
$15,300
$5,350
a. What is the Risk Weighted asset amount for cash and treasury securities?
b. What is the Risk Weighted asset amount for CMOs?
c. How many dollars of Category 2, Category 3 and Category 4 assets does the bank have?
d. What is the minimum Tier 1 capital for this bank?
e. What is the minimum Total capital for this bank?
f. Why does cash have a 0% risk weight under BASEL 1?
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International Finance Exchange Rates And Financial Flows In The International Financial System
Authors: Heather D. Gibson
1st Edition
0582218128, 978-0582218123
