Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assets value Risk Weight Factors Cash 120 0% U.S Treasury Securities 240 0% Bank Reserves 60 0% U.S Gov't Agency Securities 20 20% Mortgage Loans

Assets value Risk Weight Factors
Cash 120 0%
U.S Treasury Securities 240 0%
Bank Reserves 60 0%
U.S Gov't Agency Securities 20 20%
Mortgage Loans 350 50%
Consumer Loans 150 100
Construction Loans 10 100
Corp Debt Securities 50 100
TOTAL 1000
Liabilites & Equities
Transaction Deposits 700
Saving Accounts 100
Negoitated CDs 50
Repos 70
Subordinated Debt 20
TOTAL Liabilities 940
Common Equity 30
Retained Earnings 15
Preferred Stocks 15
TOTAL Equity 60

image text in transcribed

According to the Blue Table above, which Zone does it belong to?

TABLE 13-4 Spe cifications of Capital Cate gories for Prompt Corrective Action Common Equity Tier I Risk-Based Ratio Tier I Risk-Based Total Risk-Based Leverage Zone Ratio Ratio Ratio Capital Directive/Other 6.5% or above 1. Well capitalized and and and and Not subject to a capital directive to meet a specific level for any capital measure 8% or above 10% or above 5% or above 2. Adequately capitalized 4.5% or above and and and and 6% or above 8% or above 4% or above Does not meet the definition of well capitalized 3.Undercapitalized Under 4.5% Under 6% Under 8% Under 4% or or or 4. Significantly undercapitalized Under 3% or Under 6% or Under 8% or Under 4% 5. Critically undercapitalized Tangible equity/Total assets 2%

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

Multifractal Financial Markets An Alternative Approach To Asset And Risk Management

Authors: Yasmine Hayek Kobeissi

1st Edition

1461444896, 978-1461444893

More Books

Students also viewed these Finance questions