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Consider a bank with the following balance sheet: Assets Required reserves $17 million Excess reserves $3 million Municipal Bonds $65 million Residential Mortgages $70 million
Consider a bank with the following balance sheet: Assets Required reserves $17 million Excess reserves $3 million Municipal Bonds $65 million Residential Mortgages $70 million Commercial loans $60 million Liabilities Checkable deposits \$205 million Bank capital $10 million 1. Calculate the bank's risk-weighted assets. 2. Refer to the previous problem. Is this bank complying with the risk weighted capital requirements set by Basel
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