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Need help with question D I have attached question C with relevant information Need answer from part i- iv for D (c) Pacific Bank has
Need help with question D I have attached question C with relevant information
Need answer from part i- iv for D
(c) Pacific Bank has $20 million in assets, with risk-adjusted assets of $10 million. The amount of capital in the 3 measures is $300,000, $700 000, and $ 1 000 000, respectively. What are the values of each capital ratio? (1 mark) O 3 10ml 0.7 10m'll 10ood Tomi 8 (d) Starting with the ratios from (c) in each case, how will each of the following transactions affect the value of the three capital ratios, respectively? What will the new values of each ratio become? to the bank repurchases $100 000 of ordinary shares. (3 marks) (w) The bank issues $2 million of CDs and uses the proceeds for standard residential mortgages in the 50 per cent risk weighting category. (3 marks) (i) The bank receives $500 000 in deposits and invests them in Australian government bonds. (3 marks) (iv) The bank issues $800 000 in ordinary shares and lends it to help finance a new shopping mall (risk weight = 150%). (3 marks) el following the action in partlay(), does Pacific Bank satisfy minimum regulatory capital adequacy ratios? (1 mark) (c) Pacific Bank has $20 million in assets, with risk-adjusted assets of $10 million. The amount of capital in the 3 measures is $300,000, $700 000, and $ 1 000 000, respectively. What are the values of each capital ratio? (1 mark) O 3 10ml 0.7 10m'll 10ood Tomi 8 (d) Starting with the ratios from (c) in each case, how will each of the following transactions affect the value of the three capital ratios, respectively? What will the new values of each ratio become? to the bank repurchases $100 000 of ordinary shares. (3 marks) (w) The bank issues $2 million of CDs and uses the proceeds for standard residential mortgages in the 50 per cent risk weighting category. (3 marks) (i) The bank receives $500 000 in deposits and invests them in Australian government bonds. (3 marks) (iv) The bank issues $800 000 in ordinary shares and lends it to help finance a new shopping mall (risk weight = 150%). (3 marks) el following the action in partlay(), does Pacific Bank satisfy minimum regulatory capital adequacy ratios? (1 mark)Step by Step Solution
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