Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

need an answer for this please 7. The following is GEL Bank's assets from its current balance sheet COMPUTE Risk Weighted Assets here Amount Weight

image text in transcribed
need an answer for this please
7. The following is GEL Bank's assets from its current balance sheet COMPUTE Risk Weighted Assets here Amount Weight Cash Trea Fed. Agency bonds Muni Revenue bonds Corporate bonds Mortgages Other Loans Fixed Assets 95,000 600,000 100,000 350,000 185,000 780.000 1.300.000 400.000 3,810,000 Off Balance Sheet items Cancelable loan commitment Letters of credit Interest rate swaps Forward contracts 200,000 150,000 150,000 100,000 TOTAL R.W.A - assume that the bank's Tier I capital is $112,000 and its Tier II capital is - assume the bank has deposits of $2,910,000 a. In the space above compute Risk Weighted Assets. (10 points) $175,000. (9 points) b. Calculate the bank's three capital ratios. Tier 1 Capital Ratio Total Capital Ratio = Fed Leverage Ratio

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Information Systems Today Managing in the Digital World

Authors: Joseph Valacich, Christoph Schneider

6th edition

1292215976, 132971216, 9781292215976, 978-0132971218

More Books

Students also viewed these Accounting questions

Question

6-5. Why are subject lines important in email messages? [LO-4]

Answered: 1 week ago

Question

6-7. Why do blogs make an ideal social media hub? [LO-6]

Answered: 1 week ago