Question
(The information below applies to the following problems 8-9) A bank has $200 million in assets in the 0 percent risk-weight category. It has $400
(The information below applies to the following problems 8-9) A bank has $200 million in assets in the 0 percent risk-weight category. It has $400 million in assets in the 20 percent risk-weight category. It has $1,000 million in assets in the 50 percent risk-weight category and has $1,000 million in assets in the 100 percent risk-weight category. This bank has $96 million in Tier 1 capital and $48 million in Tier 2 capital.
8. What is this bank's ratio of Tier 1 capital to risk assets?
9. What is this bank's ratio of Tier 2 capital to risk assets?
10. A bank has $200 million in assets in the 0 percent risk-weight category. It has $400 million in assets in the 20 percent risk-weight category. It has $1,000 million in assets in the 50 percent risk-weight category and has $1,000 million in assets in the 100 percent risk-weight category. This bank has $96 million in Tier 1 capital and $48 million in Tier 2 capital. What is this bank's ratio of total capital to risk assets?
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