Question
B2 An Australian bank, subject to APRA capital regulation, has Risk-Weighted Assets (RWA) of $100,000 and total assets of $150,000. The banks regulatory capital is
B2
An Australian bank, subject to APRA capital regulation, has Risk-Weighted Assets (RWA) of $100,000 and total assets of $150,000. The banks regulatory capital is shown in the table below.
| Common Equity Tier 1 (CET1) | $7,000 |
| Additional Tier I | $500 |
| Tier II | $2,000 |
b. Calculate the amount of CET1 that remains free after meeting the minimum requirements. Explain if the regulatory buffer(s) requirements are met and if any restrictions will apply, as a result.
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Accounting and Auditing Research Tools and Strategies
Authors: Thomas Weirich, Thomas Pearson, Natalie Tatiana
9th edition
1119441915, 1119441919, 978-1-119-3737, 9781119373629 , 978-1119441915
