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please ans asap in 20 minutes Question 1 XYZ Bank has to decide to lend Rs.400crs to its borrowers of various rating classification. However, the

please ans asap in 20 minutes
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Question 1 XYZ Bank has to decide to lend Rs.400crs to its borrowers of various rating classification. However, the interest rate that it can apply would vary with the rating class: For AAA customer, there would be of 6% and for CCC customers @ of 996 a. Compute the ROEs that the bank would generate by lending the entire amount either to Art or to CCC customers under the minimum regulatory capital requirement in the Basel-1 Capital Accord regime? Marks-5 b. What would the ROEs that the Bank would generate under the minimum regulatory capital requirement in the Basel-Il Capital Accord regime? Marks-5 c. What is one of the key limitations of the minimum regulatory capital requirement in the Basel-18 Capital Accord regime? Marks-2 d. Explain the components of the total regulatory capital requirement as specified by the Reserve Bank of India under Basel-Ill regime? Marks-3 Question 1 XYZ Bank has to decide to lend Rs.400crs to its borrowers of various rating classification. However, the interest rate that it can apply would vary with the rating class: For AAA customer, there would be of 6% and for CCC customers @ of 996 a. Compute the ROEs that the bank would generate by lending the entire amount either to Art or to CCC customers under the minimum regulatory capital requirement in the Basel-1 Capital Accord regime? Marks-5 b. What would the ROEs that the Bank would generate under the minimum regulatory capital requirement in the Basel-Il Capital Accord regime? Marks-5 c. What is one of the key limitations of the minimum regulatory capital requirement in the Basel-18 Capital Accord regime? Marks-2 d. Explain the components of the total regulatory capital requirement as specified by the Reserve Bank of India under Basel-Ill regime? Marks-3

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