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Question No. 5: Using the following information for New River National Bank, calculate that bank's ratios of Tier I-capital-to- risk-weighted assets and total -capital-to-risk-weighted assets

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Question No. 5: Using the following information for New River National Bank, calculate that bank's ratios of Tier I-capital-to- risk-weighted assets and total -capital-to-risk-weighted assets under the terms of the Basel I agreement. Does the bank have sufficient capital? 1. On-balance-sheet items (Assets) Amounts Off-balance-sheet items Amounts $ Loans to corporations 150,000 Long-term unused commitments 170,000 U.S. treasury securities 70,000 SLCs 160,000 Deposits due from banks 60,000 Total off-balance-sheet item 350,000 Secured loans 140,000 Tier I capital 11,000 Cash 20,000 Tier II capital 10,000

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