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Options for Risk Weight %: 1. 0, 10, 20, 50, 75, 100 2. 0, 10, 20, 50, 75, 100 3. 0, 10, 20, 50, 75,

image text in transcribedOptions for Risk Weight %:

1. 0, 10, 20, 50, 75, 100

2. 0, 10, 20, 50, 75, 100

3. 0, 10, 20, 50, 75, 100

4. 0, 10, 20, 50, 75, 100

5. 0, 10, 20, 50, 75, 100

6.0, 10, 20, 50, 75, 100

7.0, 10, 20, 50, 75, 100

No longer relevant options:

8. 13, 8, 4, 6,2,10.5

9. This will require Gl0balBankCredit Financial Holdings PLC to: increase, decrease, leave unchanged.

GlobalBankCrdit Financial Holdings PLC estimates that 14% of its AAA to AA-rated loans are at risk for a downgrade to BBB+. Calculate the effect this would have on its minimum capital requirement under Basel III using the table below. Risk-adjusted Risk Asset Value in Amount in USD Weight % USD Cash and equivalents 5,000,000 0 Government securities 1,500,000,000 0 Inter-bank loans 100,000,000 50 Mortgage loans 2,000,000,000 50 Ordinary loans BBB+ - BBB- 377,000,000 AAA - AA- 473,000,000 Standby letters of credit 81,000,000 100 Total Assets in USD Basel Il minimum % No longer relevant Basel III minimum % 8 This will require GlobalBankCrdit Financial Holdings PLC to its reserves by $

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