Question
The following is the book value of the assets of a bank: Asset Book Value (in millions) U.S. Treasury securities $ 50 Municipal general obligation
The following is the book value of the assets of a bank:
Asset | Book Value (in millions) |
U.S. Treasury securities | $ 50 |
Municipal general obligation bonds | 50 |
Residential mortgages | 400 |
Commercial loans | 200 |
Total book value | $700 |
a. Calculate the credit risk-weighted assets using the following information:
Asset Risk Weight
U.S. Treasury securities 0%
Municipal general obligation bonds 20
Residential mortgages 50
Commercial loans 100
b. What is the minimum core capital requirement?
c. What is the minimum total capital requirement?
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Authors: Ronald W Hilton
7th Edition
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