Question
B1 Western Bank has the following entries on its balance sheet (expressed in $billion). ESF 12 Accumulated retained profit 200 Certificates of Deposits on issue
B1
Western Bank has the following entries on its balance sheet (expressed in $billion).
ESF | 12 |
Accumulated retained profit | 200 |
Certificates of Deposits on issue | 630 |
Loans to households | 752 |
Capital notes on issue | 14 |
Demand deposits of customers | 150 |
Shares on issue | 16 |
Provisions for bad and doubtful debt for loans to households | 4 |
Loans to another bank | 200 |
Capital Reserve | 20 |
Shares investment (trading) | 40 |
Government securities (available for sale) | 30 |
a) (ii) Identify the components of Western Banks regulatory total capital and calculate Western Banks regulatory total capital.
(2 marks)
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