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The following balance sheet assets for a bank are available (in actual dollars) Assets Cash $ 5,000,000 Deposits at domestic banks 2,000,000 Municipal securities 10,000,000
- The following balance sheet assets for a bank are available (in actual dollars)
Assets
Cash $ 5,000,000
Deposits at domestic banks 2,000,000
Municipal securities 10,000,000
Foreign Government securities 3,000,000
Consumer loans outstanding 20,000,000
Commercial loans outstanding 50,000,000
Total assets (on balance-sheet) $ 90,000,000
Off-balance sheet Assets:
Short-term unused loan commitments to
Individuals 5,000,000
Long-term unused loan commitments to
Private corporations 30,000,000
- The Tier I capital is $4,400,000 and Tier II capital is $4,400,000.
- Calculate Tier I capital ratio to RWA. (2 points)
- Calculate total capital ratio to RWA. (2 points)
- Based upon the five capital adequacy categories (PCA), answer the following based on Basel regulatory requirement:
Tier I capital ratio is __________ (1 point)
Total capital ratio is __________ (1 point)
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