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ASSIGNMENT ONE Whiz bank is a Zambian indigenous bank which started its operations in 1 9 9 2 . It currently has branches in all
ASSIGNMENT ONE Whiz bank is a Zambian indigenous bank which started its operations in It currently has branches in all the districts. The Balance Sheet of Whiz bank as of December is as follows: Assets Km Liabilities Km Cash in hand Issued & paidup capital Balances with central banks Reserves & surplus Balances with banks abroad Deposits Investment in government securities Borrowings from banks Loans & overdrafts Other liabilities Fixed assets Other assets Total assets Total Liabilities Other Memorandum items include: Inward bills held for collection Balances with central banks comprise: Rating Km Banque de Angola AAA Bank of Bostwana AAA Central Bank of Madagascar B Reserve Bank of Malawi BB Balances with banks abroad comprise: Rating Km HSBC London AAA Credit Lyonnais A ABSA BBB Other banks Unrated Investments in Government securities comprise: Rating Km Government of Tanzania bills BB Government of Uganda bonds BBB Other unrated Twenty percent of the loans and overdrafts are claims collateralized by cash deposits placed with Whiz bank. Other claims are: Rating Km Company X AAA Company Y BB Company Z A Other corporates unrated Residential loan Regulatory retail portfolio Reserves and surplus include: Km Retained profits Statutory reserves General provisions Revaluation reserves Undisclosed reserves Additional Notes: Risk weights AAA to AA A to A BBB to BBB BB to B Below B Unrated Claims on sovereigns and central banks Claims on banks AAA to AA A to A BBB to BB Below BB Unrated Claims on corporates Claims included in the regulatory retail portfolios have a riskweight of Claims secured by residential property have a risk weight of Other assets are risk weighted at Cash in hand and claims collateralized by cash in the same currency have a supervisory risk weight of You are required to: i Prepare a statement showing the computation of the capital adequacy ratio of Whiz bank as at December Marks ii Explain and differentiate between supervisory review and market discipline of Basel II Marks Total marks
ASSIGNMENT ONE
Whiz bank is a Zambian indigenous bank which started its operations in It currently has branches in all the districts. The Balance Sheet of Whiz bank as of December is as follows:
Assets Km Liabilities Km
Cash in hand Issued & paidup capital
Balances with central banks Reserves & surplus
Balances with banks abroad Deposits
Investment in government securities Borrowings from banks
Loans & overdrafts Other liabilities
Fixed assets
Other assets
Total assets Total Liabilities
Other Memorandum items include:
Inward bills held for collection
Balances with central banks comprise:
Rating Km
Banque de Angola AAA
Bank of Bostwana AAA
Central Bank of Madagascar B
Reserve Bank of Malawi BB
Balances with banks abroad comprise:
Rating Km
HSBC London AAA
Credit Lyonnais A
ABSA BBB
Other banks Unrated
Investments in Government securities comprise:
Rating Km
Government of Tanzania bills BB
Government of Uganda bonds BBB
Other unrated
Twenty percent of the loans and overdrafts are claims collateralized by cash deposits placed with Whiz bank. Other claims are:
Rating Km
Company X AAA
Company Y BB
Company Z A
Other corporates unrated
Residential loan
Regulatory retail portfolio
Reserves and surplus include:
Km
Retained profits
Statutory reserves
General provisions
Revaluation reserves
Undisclosed reserves
Additional Notes:
Risk weights AAA to AA A to A BBB to BBB BB to B Below B Unrated
Claims on sovereigns and central banks
Claims on banks
AAA to AA A to A BBB to BB Below BB Unrated
Claims on corporates
Claims included in the regulatory retail portfolios have a riskweight of
Claims secured by residential property have a risk weight of
Other assets are risk weighted at
Cash in hand and claims collateralized by cash in the same currency have a supervisory risk weight of
You are required to:
i Prepare a statement showing the computation of the capital adequacy ratio of Whiz bank as at December Marks
ii Explain and differentiate between supervisory review and market discipline of Basel II Marks
Total marks
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