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First National Bank has the following balance sheet (numbers in millions of $) with the risk weights in parentheses and has no off-balance-sheet activities. Assets
First National Bank has the following balance sheet (numbers in millions of $) with the risk weights in parentheses and has no off-balance-sheet activities. Assets Liabilities and Equity Cash (0%) 50 T-bills (0%) 40 Mortgage loans (50%) 240 Consumer loans (100%) 600 930 Deposits Subordinated debt (Tier II) Cum. preferred stock (Tier I) Equity (CET) 865 15 10 40 930 a) (5 points) Compute the CET1 risk-based capital ratio. b) (5 points) Compute the Tier I risk-based capital ratio. c) (5 points) Compute the total risk-based capital ratio. d) (5 points) Compute the the leverage ratio. e) (5 points) In what capital risk category would the bank be placed under Basel
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