Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exposure Risk Weight Government Treasury held as asset 1,500,000 Loans to Corporates 15,000,000 10% Loans to Small Businesses 8,000,000 Other Exposure 20% 6,000,000 10%. Based

Exposure Risk Weight Government Treasury held as asset 1,500,000 Loans to Corporates 15,000,000 10% Loans to Small Businesses 8,000,000 Other Exposure 20% 6,000,000 10%.


Based on the above information, calculate the approx. capital adequacy ratio if bank capital is $400,000.

Step by Step Solution

3.39 Rating (158 Votes )

There are 3 Steps involved in it

Step: 1

To calculate the capital adequacy ratio CAR we need to first calculate the riskweighted ass... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management Principles and Applications

Authors: Sheridan Titman, Arthur J. Keown, John H. Martin

13th edition

134417216, 978-0134417509, 013441750X, 978-0134417219

More Books

Students also viewed these Accounting questions

Question

Describe the content of the balance sheet and the income statement.

Answered: 1 week ago