Bank OZ has the following balance sheet (in millions): Assets Type Smillion Risk Category A-rated Commercial loans 700 Residential mortgages 300 C-rated Commercial loans 200 2 Cash 300 Liabilities and Equity Type Smillion Deposit 1200 Subordinated bonds 200 1 1 20 Common stock Retained Earnings 3 80 In addition, the bank has a $10 million performance-related standby letter of credit to a company in the risk category 2 and 550 million in 6-month FX forward contracts with a replacement cost of - $1 million. The bank's assets fall in 3 categories Category 1 - 3) with various levels of credit risk. The risk weight assigned to each category is one of the following three: 0. 50% 100% where each weight corresponds to one asset category in the table. The ordering of asset categories in the balance sheet is RANDOM. You need to decide which weight to use for each asset category. The conversion factor for the performance-related standby LC is 50% and that for the FX forward contract is 1%. What is the total amount of RCB's risk-adjusted on-balance sheet assets? Select one: O a. 700 O b. 1200 O c. 1500 O d. 1000 e. 600 Using the same set of information from the above question, what is the off-balance-sheet total risk-adjusted asset of Bank OZ? The information is repeated below: Bank OZ has the following balance sheet (in millions): Assets Type Smillion Risk Category A-rated Commercial loans 700 Residential mortgages 300 C-rated Commercial loans 200 Cash 300 1 Liabilities and Equity Type Smillion Deposit 1200 Subordinated bonds 200 Common stock 20 Retained Earnings 80 1 3 In addition, the bank has a $10 million performance-related standby letter of credit to a company in the risk category 2 and 550 million in 6-month FX forward contracts with a replacement cost of - $1 million. The bank's assets fall in 3 categories Category 1 - 3) with various levels of credit risk. The risk weight assigned to each category is one of the following three: 0, 50%, 100% where each weight corresponds to one asset category in the table. The ordering of asset categories in the balance sheet is RANDOM. You need to decide which weight to use for each asset category. The conversion factor for the performance-related standby LC is 50% and that for the FX forward contract is 1%. Select one: O a. 2.5 O b.3 O c.0.5 O d. 5.5 O e. 2 Using the same set of information from the above question, what is OZ bank's risk-based common Equity Tier 1 capital ratio? The information is repeated below. Bank OZ has the following balance sheet (in millions): Assets Type Smillion Risk Category A-rated Commercial loans 700 Residential mortgages 300 C-rated Commercial loans 300 1 Liabilities and Equity Type Smillion Deposit 1200 Subordinated bonds 200 Common stock Retained Earnings 1 200 2 20 Cash 3 80 In addition, the bank has a $10 million performance-related standby letter of credit to a company in the risk category 2 and 550 million in 6-month FX forward contracts with a replacement cost of - $1 million. The bank's assets fall in 3 categories Category 1 - 3) with various levels of credit risk. The risk weight assigned to each category is one of the following three: 0, 50% 100% where each weight corresponds to one asset category in the table. The ordering of asset categories in the balance sheet is RANDOM. You need to decide which weight to use for each asset category. The conversion factor for the performance-related standby LC is 50% and that for the FX forward contract is 1%. Select one: O a. 14.3% O b. 14.22% O c. 14.17% O d. 6.67% O e. None of the options. Bank OZ has the following balance sheet (in millions): Assets Type Smillion Risk Category A-rated Commercial loans 700 Residential mortgages 300 C-rated Commercial loans 200 2 Cash 300 Liabilities and Equity Type Smillion Deposit 1200 Subordinated bonds 200 1 1 20 Common stock Retained Earnings 3 80 In addition, the bank has a $10 million performance-related standby letter of credit to a company in the risk category 2 and 550 million in 6-month FX forward contracts with a replacement cost of - $1 million. The bank's assets fall in 3 categories Category 1 - 3) with various levels of credit risk. The risk weight assigned to each category is one of the following three: 0. 50% 100% where each weight corresponds to one asset category in the table. The ordering of asset categories in the balance sheet is RANDOM. You need to decide which weight to use for each asset category. The conversion factor for the performance-related standby LC is 50% and that for the FX forward contract is 1%. What is the total amount of RCB's risk-adjusted on-balance sheet assets? Select one: O a. 700 O b. 1200 O c. 1500 O d. 1000 e. 600 Using the same set of information from the above question, what is the off-balance-sheet total risk-adjusted asset of Bank OZ? The information is repeated below: Bank OZ has the following balance sheet (in millions): Assets Type Smillion Risk Category A-rated Commercial loans 700 Residential mortgages 300 C-rated Commercial loans 200 Cash 300 1 Liabilities and Equity Type Smillion Deposit 1200 Subordinated bonds 200 Common stock 20 Retained Earnings 80 1 3 In addition, the bank has a $10 million performance-related standby letter of credit to a company in the risk category 2 and 550 million in 6-month FX forward contracts with a replacement cost of - $1 million. The bank's assets fall in 3 categories Category 1 - 3) with various levels of credit risk. The risk weight assigned to each category is one of the following three: 0, 50%, 100% where each weight corresponds to one asset category in the table. The ordering of asset categories in the balance sheet is RANDOM. You need to decide which weight to use for each asset category. The conversion factor for the performance-related standby LC is 50% and that for the FX forward contract is 1%. Select one: O a. 2.5 O b.3 O c.0.5 O d. 5.5 O e. 2 Using the same set of information from the above question, what is OZ bank's risk-based common Equity Tier 1 capital ratio? The information is repeated below. Bank OZ has the following balance sheet (in millions): Assets Type Smillion Risk Category A-rated Commercial loans 700 Residential mortgages 300 C-rated Commercial loans 300 1 Liabilities and Equity Type Smillion Deposit 1200 Subordinated bonds 200 Common stock Retained Earnings 1 200 2 20 Cash 3 80 In addition, the bank has a $10 million performance-related standby letter of credit to a company in the risk category 2 and 550 million in 6-month FX forward contracts with a replacement cost of - $1 million. The bank's assets fall in 3 categories Category 1 - 3) with various levels of credit risk. The risk weight assigned to each category is one of the following three: 0, 50% 100% where each weight corresponds to one asset category in the table. The ordering of asset categories in the balance sheet is RANDOM. You need to decide which weight to use for each asset category. The conversion factor for the performance-related standby LC is 50% and that for the FX forward contract is 1%. Select one: O a. 14.3% O b. 14.22% O c. 14.17% O d. 6.67% O e. None of the options
