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Question 16 (5 points) A bank has the following balance sheet and has no OBS contingencies. Asset Cat Liab, and Net Worth Cash $ 20,000,000

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Question 16 (5 points) A bank has the following balance sheet and has no OBS contingencies. Asset Cat Liab, and Net Worth Cash $ 20,000,000 Deposits $ 975,000,000 Treasury Bills 80,000,000 Sub. Debentures Tier II $ 125,000,000 Residential Mortgages 400,000,000 Preferred Stock Add'l Tier 1 $ 25,000,000 Business Loans 6 $630,000,000 Common Stock CET 1 $ 75,000,000 Loans (90 days past due) 7 $ 150,000,000 Retained Earnings CET 1 $ 80,000,000 Total Assets $ 1,200,000,000 Total Liab. & Net Worth $1,200,000,000 Use the tables below to calculate the Common Equity Tier I (CET1) Risk-Based Capital Ratio. What is the CET1 Risk-Based Capital Ratio? - Colegory 1 - 096 Category 2 -20% . Category 3 -36% Category 1 - 50% Category 5 -75% Category 6 - 100% - Category 7-150% - Category 200% Category 1260% Bored capital Rento All tilpail Hallo - Cargory 1 - 0 - Cory 2 -20% - Coregory 3 - 359 - Carpory - 50 Cargory 5 - 75 - Coregory - 100% - Category 7-150%- - Category 8-2005 Category - 125096 Ther Bud Capital Radio City The Capital Credit A Therd-Based Capital All Tier I Capital CrisAdjusted Assets Total Red Capital Ratio Total Capital (Tiers Credit Risk Asset Tier I Le Rate All The Capital Total Exposure 10.2% 15.9% 14.7% 12.8%

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