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Bank ABC's initial balance sheet position (in million) is illustrated below: ASSETS LIABILITIES 600 50 50 Retail deposits Interbank deposits BBB-rated bonds Equity Cash Interbank
Bank ABC's initial balance sheet position (in million) is illustrated below: ASSETS LIABILITIES 600 50 50 Retail deposits Interbank deposits BBB-rated bonds Equity Cash Interbank loans 150 Securities 200 300 Mortgages 600 50 TOTAL 1000 TOTAL 1000 a) Calculate the bank's capital to asset ratio. ( 5 marks ) b) Calculate the bank's risk weighted assets (RWA) and regulatory capital position. Is the bank adequately capitalised? Bank ABC's initial balance sheet position (in million) is illustrated below: ASSETS LIABILITIES 600 50 50 Retail deposits Interbank deposits BBB-rated bonds Equity Cash Interbank loans 150 Securities 200 300 Mortgages 600 50 TOTAL 1000 TOTAL 1000 a) Calculate the bank's capital to asset ratio. ( 5 marks ) b) Calculate the bank's risk weighted assets (RWA) and regulatory capital position. Is the bank adequately capitalised
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