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risk weighted asset B Exercise on capital requirements and risk weighted asset: Bank Barakah has additional capital beyond the minimum regulatory requirement (assume: common equity

risk weighted asset
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B Exercise on capital requirements and risk weighted asset: Bank Barakah has additional capital beyond the minimum regulatory requirement (assume: common equity tier 1 capital ratio: 4.5%; capital conservation buffer: 2.5%). The bank has an asset portfolio of $1.5 billion and liabilities of $1.4 billion. The bank decided not to hold any additional capital. Based on the details below and given the need to comply with the minimum regulatory requirement, what is the maximum additional amount of financing or investment that the bank can allocate for (a) Islamic Development Bank sukuk; (b) Sovereign XYZ sukuk; (c) mortgages; or (d) business financing? Risk weight(%) Bank Barakah's Asset ($ million) Islamic Development Bank sukuk Sovereign XYZ suk 150 150 600 600 uk 20 50 100 Mortgage financing Business financing B Exercise on capital requirements and risk weighted asset: Bank Barakah has additional capital beyond the minimum regulatory requirement (assume: common equity tier 1 capital ratio: 4.5%; capital conservation buffer: 2.5%). The bank has an asset portfolio of $1.5 billion and liabilities of $1.4 billion. The bank decided not to hold any additional capital. Based on the details below and given the need to comply with the minimum regulatory requirement, what is the maximum additional amount of financing or investment that the bank can allocate for (a) Islamic Development Bank sukuk; (b) Sovereign XYZ sukuk; (c) mortgages; or (d) business financing? Risk weight(%) Bank Barakah's Asset ($ million) Islamic Development Bank sukuk Sovereign XYZ suk 150 150 600 600 uk 20 50 100 Mortgage financing Business financing

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