Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help to solve this question, A bank's balance sheet information is shown below (in $000). On Balance Sheet Items Cash Short-term government securities (92

image text in transcribedimage text in transcribedimage text in transcribedPlease help to solve this question,

A bank's balance sheet information is shown below (in $000). On Balance Sheet Items Cash Short-term government securities (92 days) Federal Reserve stock Repos secured by federal agencies Claims on U.S. depository institutions Loans to foreign banks, OECD CRC rated 2 General obligation municipals Claims on or guaranteed by federal agencies Municipal revenue bonds Residential mortgages, category 1, loan-to-value ratio 75% Commercial loans Loans to sovereigns, OECD CRC rated 3 Premises and equipment Face Value $ 134,600 6,700 427,400 11,100 172,000 950,900 1,770,000 183,000 27,800 125,900 6,300,000 5,967,669 12,900 468,000 Conversion Factor (%) Face Value 300 1,140 200 100 100 100 3,000 Off Balance Sheet Items: U.S. Government Counterparty Loan commitments: 1 year Standby letters of credit: Performance-related Direct-credit substitute Commercial letters of credit: State and Local Government Counterparty (revenue municipals) Loan commitments: >1 year Standby letters of credit: Performance-related Corporate Customer counterparty Loan commitments: 1 year Standby letters of credit: Performance-related Direct-credit substitute Commercial letters of credit: Sovereign counterparty 100 20 200 56,400 400 100 135,400 50 3,212,400 3,046, 278 50 100 20 101,543 490,900 78,978 85,000 115,500 Sovereign counterparty Loan commitments, OECD CRC rated 2: 1 year Sovereign counterparty Loan commitments, OECD CRC rated 7: >1 year Interest rate market contracts (current exposure assumed to be zero): 1-5 year (notional amount) 30,000 2,000 5,000 What is the bank's risk-adjusted asset base? (Round your answer to the nearest whole dollar amount. (e.g., 32)) Risk-adjusted asset base A bank's balance sheet information is shown below (in $000). On Balance Sheet Items Cash Short-term government securities (92 days) Federal Reserve stock Repos secured by federal agencies Claims on U.S. depository institutions Loans to foreign banks, OECD CRC rated 2 General obligation municipals Claims on or guaranteed by federal agencies Municipal revenue bonds Residential mortgages, category 1, loan-to-value ratio 75% Commercial loans Loans to sovereigns, OECD CRC rated 3 Premises and equipment Face Value $ 134,600 6,700 427,400 11,100 172,000 950,900 1,770,000 183,000 27,800 125,900 6,300,000 5,967,669 12,900 468,000 Conversion Factor (%) Face Value 300 1,140 200 100 100 100 3,000 Off Balance Sheet Items: U.S. Government Counterparty Loan commitments: 1 year Standby letters of credit: Performance-related Direct-credit substitute Commercial letters of credit: State and Local Government Counterparty (revenue municipals) Loan commitments: >1 year Standby letters of credit: Performance-related Corporate Customer counterparty Loan commitments: 1 year Standby letters of credit: Performance-related Direct-credit substitute Commercial letters of credit: Sovereign counterparty 100 20 200 56,400 400 100 135,400 50 3,212,400 3,046, 278 50 100 20 101,543 490,900 78,978 85,000 115,500 Sovereign counterparty Loan commitments, OECD CRC rated 2: 1 year Sovereign counterparty Loan commitments, OECD CRC rated 7: >1 year Interest rate market contracts (current exposure assumed to be zero): 1-5 year (notional amount) 30,000 2,000 5,000 What is the bank's risk-adjusted asset base? (Round your answer to the nearest whole dollar amount. (e.g., 32)) Risk-adjusted asset base

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Concept Audits A Philosophical Method

Authors: Nicholas Rescher

1st Edition

1498540392, 978-1498540391

More Books

Students also viewed these Accounting questions

Question

12. Why do you think you would like this particular type of job?

Answered: 1 week ago

Question

c. What groups were least represented? Why do you think this is so?

Answered: 1 week ago

Question

7. Describe phases of multicultural identity development.

Answered: 1 week ago