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On Bank of New Folk's balance sheet, there are: 4 Residential real estate loans, $300 million; 4 Government securities, $150 million; Cash, $200 million; U.S.
On Bank of New Folk's balance sheet, there are: 4 Residential real estate loans, $300 million; 4 Government securities, $150 million; Cash, $200 million; U.S. and corporate loans, $350 million. + The off-balance-sheet items are:- Standby credit letters, $50 million; Long-term credit commitments to corporations, $150 million. & The conversion factor for converting standby credit letters into equivalent amounts of on- balance sheet assets is 0.2; The conversion factor for converting long-term commitments to corporations into equivalent amounts of on-balance sheet assets is 0.5. & i. What are Bank of New Folk's total risk-weighted assets? ii. If the bank reports Tier 1 capital of $24 million and Tier 2 capital of $25 million, does it have a capital deficiency problem? On Bank of New Folk's balance sheet, there are: 4 Residential real estate loans, $300 million; 4 Government securities, $150 million; Cash, $200 million; U.S. and corporate loans, $350 million. + The off-balance-sheet items are:- Standby credit letters, $50 million; Long-term credit commitments to corporations, $150 million. & The conversion factor for converting standby credit letters into equivalent amounts of on- balance sheet assets is 0.2; The conversion factor for converting long-term commitments to corporations into equivalent amounts of on-balance sheet assets is 0.5. & i. What are Bank of New Folk's total risk-weighted assets? ii. If the bank reports Tier 1 capital of $24 million and Tier 2 capital of $25 million, does it have a capital deficiency
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