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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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