Refer to Table 13:28 Onshore Bank has $33 million in assets, with risk weighted assets of $23 million Core Equity Tier 1 (CETI) capital is $1,050,000, additional Tieri capital is $370,000, and Tier Il capital is $426,000. The current value of the CET1 ratio is 4 57 percent, the Tierratio is 6.17 percent, and the total capital ratio is 803 percent Calculate the new value of CET1 Tier I, and total capital ratios for the following transactions cer a. The bank repurchases $113,000 of common stock with cash b. The bank issues $3.3 million of CDs and uses the proceeds to issue category I mortgage loans with a loan-to-value ratio of 70 percent c. The bank receives $513,000 in deposits and invests them in Tbilis d. The bank issues $813,000 in common stock and lends it to help finance a new shopping mall The developer has an A+ credit rating e. The bank issues $2.3 million in nonqualifying perpetual preferred stock and purchases general obligation municipal bonds 1. Homeowners pay back $5.3 million of mortgages with loan-to-value ratios of 50 percent and the bank uses the proceeds to build new ATMs Complete this question by entering your answers in the tabs below. ant ences Required A Required B Required Readyed D Required E Required F The bank repurchases $113,000 of common stock with cash. (Round your percentage answers to 2 decimal places. (eg, 32.16)) CET1 ratio Tier I ratio Total capital ratio 4.07% 5.6896 753 % Complete this question by entering your answers in the tabs below. Required A Required Required Required D Required Required The bank Issues $3.3 million of CDs and uses the proceeds to issue category 1 mortgage loans with a loan-to-value ratio of 70 percent. (Round your percentage answers to 2 decimal places. (e.g. 32.16)) CET1 ratio Tier I ratio Total capital ratio % % % Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Required E Required F The bank receives $513,000 in deposits and Invests them in T-bills. (Round your percentage answers to 2 decimal places. (e.g., 32.16)) % CET1 ratio Tier I ratio Total capital ratio % % Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Required E Required F The bank issues $813,000 in common stock and lends it to help finance a new shopping mall. The developer has an A+ credit rating. (Round your percentage answers to 2 decimal places. (e.g. 32.16)) CET1 ratio Tier I ratio Complete this question by entering your answers in the tabs below. Required A Required B Required Required Required Required F The bank issues $2.3 million in nonqualifying perpetual preferred stock and purchases general obligation municipal bonds (Round your percentage answers to 2 decimal places. (1.9. 32.167) CET 1. ratio Tier I ratio Total capital ratio 95 Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Required E Required Homeowners pay back $5.3 million of mortgages with loan-to-value ratios of 50 percent and the bank uses the proceeds to build new ATMs. (Round your percentage answers to 2 decimal places. (e.9., 32.16)) CET1 ratio % Tier 1 ratio Total capital ratio % 9
