The National Bank of Kinshasa has an outstanding loan portfolio on its balance sheet as of today equal to $600 million. Half of them are fully utilized retail loans that comply with the four criteria of Basel II. The other half is made up of corporate loans. All corporate loans (except one granted to General Electric) are fully utilized and granted to unrated corporates. As for the corporate loan granted to General Electric, it has the following details:
 
 -An authorized loan of $15 million, the utilized part is $5 million
 -The rating of General Electric is AA-
 -The expiry of the facility is 8 monthsUsing the standardized approach in Basel II, answer the following questions:


The capital requirement needed for the above retail portfolio is:

a) $8.40 million

b) $18.00 million

c) $24.00 million

d) $48.00 million

e) None of the above


The capital requirement needed for the above corporate portfolio excluding the loan for GE is:

a) $22.80 million

b) $23.64 million

c) $24.20 million

d) $24.45 million

e) None of the above


The capital requirement needed for the corporate loan to General Electric is:

a) $32,000

b) $80,000

c) $112,000

d) $160,000

e) None of the above

The risk weighted assets for National Bank of Kinshasa as of today are:

a) $400 million

b) $518 million

c) $577 million

d) $600 million

e) None of the above