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Risk Weight Risk-Adjusted Assets Bank Assets 0% $ 20% $ 200 20% $ 300 $ 2,000 $ 1.000 $ 1,500 $ 2,700 $ 2.500 $

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Risk Weight Risk-Adjusted Assets Bank Assets 0% $ 20% $ 200 20% $ 300 $ 2,000 $ 1.000 $ 1,500 $ 2,700 $ 2.500 $ 1.500 $ 2,100 Cash and Treasury Securities Repurchase Agreements Municipal Bonds Single Family Home Mortgages CMOS Commercial Loans Agricultural Loans 50% $ 50% $ 1,350 1.250 1,500 2.100 100% $ 100% $ Allowance for Loan Loss $ (300) 0% $ 100% $ 2.000 Bank Buildings Total $ 2,000 $15,000 $ 8.700 The minimum Tier 1 capital for this bank is. Under the current capital requirements, assets in Category 2, such as repurchase agreements, have an effective total capital-to-total-assets ratio of: O 16% 2.0% 40% 8.0% 8.6% Which of the following was not part of the Basel Agreement? O Bank's required capital was linked to its composition of assets Banks are required to operate with a minimum level of equity. The ownership of equity by banks was prohibited. Capital requirements across countries were standardized The minimum total capital requirements were set to 8% of risk-adjusted assets

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