Question
Question 13 Using the following financial information, prepare the balance sheet as at 31/12/19 for High Street Bank Plc. (10 marks) High Street Bank Plc
Question 13
- Using the following financial information, prepare the balance sheet as at 31/12/19 for High Street Bank Plc.
(10 marks)
| High Street Bank Plc 31/12/19 | ||
| Overdraft | 5,000 | |
| Current Accounts | 4,900 | |
| Loans | 2,000 | |
| Savings Accounts | 10,000 | |
| Credit Cards | 1,200 | |
| Capital | 1,000 | |
| Mortgages | 6,000 | |
| Cash Reserves | 1,500 | |
| Investments | 200 | |
- In relation to a bank, define the term risk-weighted assets (RWA).
(2 marks)
- Based on the following ratios, calculate the total RWA for High Street Bank Plc, and how much capital it will need under Basel III capital adequacy requirements of 10.5%
(8 marks)
| Lending Products | m | Risk Weighting |
| Overdrafts | 5,000 | 100% |
| Personal Loans | 2,000 | 125% |
| Credit Cards | 1,200 | 175% |
| Mortgages | 6,000 | 50% |
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
Financial Accounting Tools For Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
1st Edition
0471169196, 978-0471169192
