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Bank A Loans 1000 Deposits 900 Equity 100 Total 1000 Total 1000 Bank B Cash 1100 Deposits 1000 Equity 100 Total 1100 Total 1100 After
Bank A | ||||
Loans | 1000 | Deposits | 900 | |
Equity | 100 | |||
Total | 1000 | Total | 1000 | |
Bank B | ||||
Cash | 1100 | Deposits | 1000 | |
Equity | 100 | |||
Total | 1100 | Total | 1100 |
After Basel I, which of the above banks would be required to hold more capital?
what about before?
A. | Bank A | |
B. | Bank B | |
C. | They would need to hold the same amount | |
D. | Not enough information |
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