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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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