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Fifth Bank has the following balance sheet with values stated in millions of dollars. All assets are associated with corporate customers (not governments or sovereigns).
Fifth Bank has the following balance sheet with values stated in millions of dollars. All assets are associated with corporate customers (not governments or sovereigns). Refer to Table 20-8 for associated risk weights. $5501 $80 Deposits $100 Cash Municipal General Obligation Bonds Residential Mortgages 1-4 family (LTV 6096 - 80%6) Commercial loans Total Assets $220 Long-Term Debt $290 $500 Equity $9001 $60 $900 In addition, Fifth Bank has off-balance sheet items as follows: (Refer to Tables 20-10 and 20-11) $50 million in commercial letters of credit (LCs), $300 million in 3-year interest rate swaps that are in-the-money by $2 million $50 million in 4-year forward FX contracts that are out-of-the money by $2 million What is the amount of risk adjusted on-balance-sheet assets of the bank as defined under the Basel II standards? O $130.0 million. O $900.0 million. $720.0 million. O $630.0 million. O $685.0 million. Fifth Bank has the following balance sheet with values stated in millions of dollars. All assets are associated with corporate customers (not governments or sovereigns). Refer to Table 20-8 for associated risk weights. $5501 $80 Deposits $100 Cash Municipal General Obligation Bonds Residential Mortgages 1-4 family (LTV 6096 - 80%6) Commercial loans Total Assets $220 Long-Term Debt $290 $500 Equity $9001 $60 $900 In addition, Fifth Bank has off-balance sheet items as follows: (Refer to Tables 20-10 and 20-11) $50 million in commercial letters of credit (LCs), $300 million in 3-year interest rate swaps that are in-the-money by $2 million $50 million in 4-year forward FX contracts that are out-of-the money by $2 million What is the amount of risk adjusted on-balance-sheet assets of the bank as defined under the Basel II standards? O $130.0 million. O $900.0 million. $720.0 million. O $630.0 million. O $685.0 million
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