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Suppose a bank has $6,000 in total capital and $100,000 in total assets. Bank has the following On-Balanace sheet and Off-balance sheet. On-Balanace sheet 1.
Suppose a bank has $6,000 in total capital and $100,000 in total assets.
Bank has the following On-Balanace sheet and Off-balance sheet.
On-Balanace sheet 1. Cash $5,000 2. Treasury security $20,000 3. laons secured by family residential properties $5,000 4. loans to provide corporations $65,000
Off-balance sheet 1. Standby parking corporate borrowers $10,000 2. long term credit commitments to private companies $20,000
Determine whether the bank meets international capita requirements under Basel I requirement.
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