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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
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 CET1 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
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1 Calculate RiskWeighted Assets RWA under Basel III Risk weights for each asset class Cash 0 Shortterm Govt Securities 20 Longterm Govt Securities 50 ...Get Instant Access to Expert-Tailored Solutions
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