Balance Sheet Items

Assets Liabilities

Cash $$121,600$ Deposits $$12,796,639$

Short$-$term Govt. Securities $(<92$ days$)5,400$

Long$-$term Govt. Securities $(>92$ days$)414,400$

Federal Reserve Stock $9,800$

Repos secured by Federal Agencies $159,000$ Subordinated Bonds $300,000$

Claims on U$.$ S$.$ Depository Institutions $937,900$

Loans to Foreign Banks$($External Rating of BBB$+)1,640,000$

General Obligation municipals,

with external rating of AA $170,000$

Claims on or guaranteed by federal agencies $26,500$

Municipal Revenue bonds, with external rating of BBB $112,900$ Retained Earnings $285,130$

Residential mortgages with loan$-$to$-$value of $95\%5,000,000$

Commercial Loans $4,667,669$ Common Equity $300,000$

Loans to sovereigns, with external rating of BBB$-11,600$ Noncumulative,

Premises and equipment $455,000$ perpetual preferred

Stock $($qualifying$)50,000$

Total $13,731,769$ $$13,731,769$

INSTRUCTIONS:

$1.$ Calculate the bank$$s risk$-$weighted asset base under Basel III. See Example $21-1,$ Table $21-7,$ and the latter

part of Example $21-2$ to establish your framework in determining Risk$-$Weighted Assets.

$2.$ Calculate the CET$1$ risk$-$based capital ratio. Consult definition for Common Equity Tier $1$

$3.$ Calculate the Tier I risk$-$based capital ratio. Consult definition for Tier I $-$ Preferred

$4.$ Calculate the Total risk$-$based capital ratio. Consult definition for Tier II

$5.$ Calculate the Tier $1$ Leverage Ratio.

$6.$ Where does the bank fall in meeting it$$s a$)$ CET $1,$ b$)$ Tier I, c$)$ Total risk based, and d$)$ Tier $1$ Leverage ratio

capital requirements per Table $21-4?$ In other words, what zone does the Bank find itself?

$7.$ Explain the Capital Conservation Buffer of $2\mathrm{.}5\%.$

$8.$ If you add the $2\mathrm{.}5\%$ to the minimum requirement for Adequately Capitalized wherein the bank would NOT

incur any payout ratio limitations$,$ discuss if the bank WOULD or WOULD NOT incur payout limitations such as

dividends, stock buybacks, or executive bonuses within the context of what you calculated in the capital ratios

Can you please help me out with this problem. Thank you