Question
Onshore Bank has $21 million in assets, with risk-adjusted assets of $11 million. Core Equity Tier 1 (CET1) capital is $610,000, additional Tier I capital
Onshore Bank has $21 million in assets, with risk-adjusted assets of $11 million. Core Equity Tier 1 (CET1) capital is $610,000, additional Tier I capital is $60,000, and Tier II capital is $402,000. The current value of the CET1 ratio is 5.55 percent, the Tier I ratio is 6.09 percent, and the total capital ratio is 9.75 percent. |
Calculate the new value of CET1, Tier I, and total capital ratios for the following transactions. The bank issues $801,000 in common stock and lends it to help finance a new shopping mall. The developer has an A+ credit rating. (Round your answers to 2 decimal places. (e.g., 32.16))
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