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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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