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Below are three bank balance sheets. Answer the following questions about the banks capital ratios. Bank A Bank B Bank C BANK A Assets Liabilities

Below are three bank balance sheets. Answer the following questions about the banks capital ratios. Bank A Bank B Bank C

BANK A

Assets Liabilities
49 auto loans 95 checking
50 BBB+ C&I loans
10 cash / reserves 5 equity
total 100 Total 100

BANK B

Assets Liabilities
40 Treasury Bills 88 checking
48 AA- C&I loans 7 sub debt
12 cash / reserves 5 equity
Total 100 Total 100

BANK C

Assets Liabilities
40 treasury bills 91 checking
50 BBB+ C&I loans
10 cash / reserves 9 equity
Total 100 Total 100

a. Which banks, if any, have leverage ratios below the regulatory minimum? _______

b. Which bank has the highest leverage ratio? ______

c.Which bank has the lowest amount of risk-weighted assets? ____

d.Which bank has the largest dollar amount of risk-based capital? ____

e.Which bank is the safest bank of the three? ____

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