From the capitalization and summary balance sheet reports for quarter 2, answer the following: a) Estimate...
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From the capitalization and summary balance sheet reports for quarter 2, answer the following: a) Estimate the Basel 1 and Basel 1+11 ratios for quarters 0 and 1 using the formula below. Basel 1 ratio = Net Worth/(RWA-Excess LLA) Basel 1+Il ratio = (Net Worth + LLA)/((RWA-Excess LLA) where RWA is risk-weighted assets and LLA is loan Loss allowance Excess LLA is (LLA - 1.25% of RWA) Did they decline from the previous quarter? From the capitalization and summary balance sheet reports for quarter 2, answer the following: a) Estimate the Basel 1 and Basel 1+11 ratios for quarters 0 and 1 using the formula below. Basel 1 ratio = Net Worth/(RWA-Excess LLA) Basel 1+Il ratio = (Net Worth + LLA)/((RWA-Excess LLA) where RWA is risk-weighted assets and LLA is loan Loss allowance Excess LLA is (LLA - 1.25% of RWA) Did they decline from the previous quarter?
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Certainly The Basel 1 and Basel 1II ratios are measures of a banks capital adequacy and are used to ... View the full answer
Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
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