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please answer this question correctly and explain more QUESTION THREE (20 MARKS) Imagine that Hazim Islamic bank, has the following asset and financial details: Risk
please answer this question correctly and explain more
QUESTION THREE (20 MARKS) Imagine that Hazim Islamic bank, has the following asset and financial details: Risk Balance Sheet Items (million) weightage BNM statutory reserve 0% Malaysian government securities (MGS) and treasury bills 0% Placement with discount houses 10% Amounts owed by banking institutions 20% House financing secured by first charge on residential 120 50% property Financing and advances provided to commercial customers 400 100% 882812 Off-balance sheet items RM (million) 60 Credit Conversion Factor 100% Risk weightage 50% House financing sold to Cagamas with recourse 20 50% 100% Performance sukuk for commercial customers Letters of credit for commercial customers 70 20% 100% Capital Paid up ordinary shares Share premium Retained profits Subordinated term debt Revaluation reserve General provision for bad debts and doubtful debts RM (million) 30 5 10 14 4 6 (a) Compute the risk weighted capital adequacy ratio (RWCR). (15 marks) (b) Evaluate whether the bank has fulfilled the capital adequacy requirementStep by Step Solution
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