Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Onshore Bank has $ 3 7 million in assets, with risk - weighted assets of $ 2 7 million. Core Equity Tier 1 ( CET
Onshore Bank has $ million in assets, with riskweighted assets of $ million. Core Equity Tier CET capital is $ additional Tier I capital is $ and Tier II capital is $ The current value of the CET ratio is percent, the Tier I ratio is percent, and the total capital ratio is percent.
Calculate the new value of CET Tier I, and total capital ratios for the following transactions.
The bank repurchases $ of common stock with cash.
The bank issues $ million of CDs and uses the proceeds to issue category mortgage loans with a loantovalue ratio of percent.
The bank receives $ in deposits and invests them in Tbills.
The bank issues $ in common stock and lends it to help finance a new shopping mall. The developer has an A credit rating.
The bank issues $ million in nonqualifying perpetual preferred stock and purchases general obligation municipal bonds.
Homeowners pay back $ million of mortgages with loantovalue ratios of percent and the bank uses the proceeds to build new ATMs.Onshore Bank has $ million in assets, with riskweighted assets of $ million. Core Equity Tier CET capital is $ additional Tier I capital is $ and Tier II capital is $ The current value of the CET ratio is percent, the Tier I ratio is percent, and the total capital ratio is percent.
Calculate the new value of CET Tier I, and total capital ratios for the following transactions.
The bank repurchases $ of common stock with cash.
The bank issues $ million of CDs and uses the proceeds to issue category mortgage loans with a loantovalue ratio of percent.
The bank receives $ in deposits and invests them in Tbills.
The bank issues $ in common stock and lends it to help finance a new shopping mall. The developer has an A credit rating.
The bank issues $ million in nonqualifying perpetual preferred stock and purchases general obligation municipal bonds.
Homeowners pay back $ million of mortgages with loantovalue ratios of percent and the bank uses the proceeds to build new ATMs. Please Answer all parts
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started