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Question 4 9900 350 Assets Cash Treasury Bills Residential Mortgages Catergory 1, loan to value ratio -70% Business loans Getitright Bank Liabilities 330 Deposits 500
Question 4 9900 350 Assets Cash Treasury Bills Residential Mortgages Catergory 1, loan to value ratio -70% Business loans Getitright Bank Liabilities 330 Deposits 500 Subordinated Debentures Non Cumulative Perpetual Preferred 6100 stock qualifying 4400 Common Stock Retained Earnings 11330 30 550 500 11330 Getitright Bank has the following Balance sheet (in millions) with no off balance sheet activities. a. What is the CET 1 risk-based capital ratio? (4 marks) b. What is the Tier I risk-based capital ratio? (4 marks) c. What is the total risk-based capital ratio? (4 marks) d. What is the leverage ratio? (4 marks) e. In what capital category would the bank be placed? (4 marks)
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