Question
Key Biscayne Bank has total assets of $50m (m is millions), risk weighted assets of $45m, tier 1 capital of $2.5m and tier 2 capital
Key Biscayne Bank has total assets of $50m (m is millions), risk weighted assets of $45m, tier 1 capital of $2.5m and tier 2 capital of $2m. Calculate the following ratios and would it be considered capitalized.
Leverage ratio
Total capital/ assets
Core Capital/ risk weighted assets
Total capital/ risk weighted assets
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Financial Markets and Institutions
Authors: Jeff Madura
12th edition
9781337515535, 1337099740, 1337515531, 978-1337099745
