Question
National Bank has the following balance sheet (in millions) and has no off- - balance-sheet activities. page 649 Assets Liabilities and Equity Cash $ 20
National Bank has the following balance sheet (in millions) and has no off--balance-sheet activities.
page 649
| Assets | Liabilities and Equity | ||
| Cash | $ 20 | Deposits | $ 980 |
| Treasury bills | 40 | Subordinated debentures | 25 |
| Residential mortgages | 600 | Common stock | 45 |
| (category 1, loan-to-value ratio = 70%) |
| Retained earnings | 40 |
| Business loans | 430 | Total liabilities and equity | $1,090 |
| Total assets | $1,090 |
|
|
What is the CET1 risk-based ratio?
What is the Tier I risk-based capital ratio?
What is the total riskbased capital ratio?
What is the leverage ratio?
In what capital category would the bank be placed?
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Money Banking And Financial Markets
Authors: Stephen Cecchetti
2nd Edition
0073523097, 9780073523095
