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could you please help me check the answers. B4 On a scrap paper, make the calculations necessary to answer the questions below. Then use your

could you please help me check the answers.

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B4 On a scrap paper, make the calculations necessary to answer the questions below. Then use your draft to fill the following multiple blanks. The scrap paper will not be uploaded but needs to be kept for future reference. A bank has Risk-Weighted Assets (RWA) of $400,000 and total assets of $600,000. The bank's regulatory capital is shown in the table below. The country applies a 1% countercyclical buffer. Basel Ill capital regulation applies. Common Equity Tier 1 (CET1) $22,000 Additional Tier 1 $5,000 Tier 2 $20,000 (a) The actual T1 ratio of this bank is Round up your result to 3 decimal place. Do not show the calculations. (b) The required amount of CET 1 capital to meet the CET 1 minimum requirement is Do not type the $ sign. (c) This bank meets the minimum capital requirements Type F for fully, P for partially or N for not at all. (d) The additional amount of CET1 (on top of the required minimum CET1) required to meet the Tier 1 minimum requirement is Do not type the $ sign. (e) The amount of free CET1 capital after meeting the Basel Ill minimum capital requirements is . Do not type the $ sign. (f) This bank meets the buffers -Type Y for Yes, N for No, or ? if the question does not provide enough information to conclude. (g) On the basis of the information above, the bank will be asked to Type 1 if the bank needs to restructure its assets Type 2 if the bank needs to reduce the payment of bonuses to its employees Type 3 if no action is required. Imagine that the Northern Territory government credit rating is downgraded by Moody's to Ba1. Using the table of conversion provided here Basel II III_risk weights_grade_and weight. pdf , (h) Indicate the credit rating grade associated with lending to the Northern Territory government: Only type a number. (i) Indicate the risk weight that should be used for that asset when calculating RWA %. If the weight is 1209% only type 120 (no 9%). Answer: A 0.067 B 8000 CF D 10000 E 3000 F ? G type 2 H 4 I 100

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