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this are the question and use the table 13-28 below in red to answer it Onshore Bank has $34 million in assets, with risk-weighted assets
this are the question and use the table 13-28 below in red to answer it
Onshore Bank has $34 million in assets, with risk-weighted assets of $24 million. Core Equity Tier 1 (CET1) capital is $1,100,000, additional Tier I capital is $400,000, and Tier 11 capital is $428,000. The current value of the CET1 ratio is 4.58 percent, the Tier I ratio is 6.25 percent, and the total capital ratio is 8.03 percent. Calculate the new value of CET1, Tier 1 , and total capital ratios for the following transactions. a. The bank repurchases $114,000 of common stock with cash. b. The bank issues $3.4 million of CDs and uses the proceeds to issue category 1 mortgage loans with a loan-to-value ratio of 80 percent. c. The bank receives $514,000 in deposits and invests them in T-bills. d. The bank issues $814,000 in common stock and lends it to help finance a new shopping mall. The developer has an A+credit rating. e. The bankissues $2.4 million in nonqualifying perpetual preferred stock and purchases general obligation municipal bonds. t. Homeowners pay back $5.4 million of mortgages with loan-to-value ratios of 40 percent and the bank uses the proceeds to build new ATMs: 5. Exposures to public-sector entities (PSEs): Genenal obligation exposures to U.S. PSEs Revenue obligation exposures to U.S. PSEs General obligation exposures to non-U.S. PSEs: CRC of 01 CRC of 2 CRC of 3 CRC of 47 OECD member with no CRC Onshore Bank has $34 million in assets, with risk-weighted assets of $24 million. Core Equity Tier 1 (CET1) capital is $1,100,000, additional Tier I capital is $400,000, and Tier II capital is $428,000. The current value of the CET1 ratio is 4.58 percent, the Tier I ratio is 6.25 percent, and the total capital ratio is 8.03 percent. Calculate the new value of CET1, Tier l, and total capital ratios for the following transactions. a. The bank repurchases $114,000 of common stock with cash. b. The bank issues $3.4 million of CDs and uses the proceeds to issue category 1 mortgage loans with a loan-to-value ratio of 80 percent. c. The bank recelves $514,000 in deposits and invests them in T-bills. d. The bank issues $814,000 in common spock and lends it to help finance a new shopping mall. The developer has an A+ credit rating. e. The bank issues $2.4 milition in nonqualifying perpetual preferred stock and purchases general obligation municipal bonds. f. Homeowners pay back $5.4 million of mortgages with loan-to-value ratios of 40 percent and the bank uses the proceeds to build new ATMs. 5. Exposures to public-sector entities (PSEs): Genenal obligation exposures to U.S. PSEs Revenue obligation exposures to U.S. PSEs General obligation exposures to non-U.S. PSEs: CRC of 01 CRC of 2 CRC of 3 CRC of 4.7 OECD member with no CRC Onshore Bank has $34 million in assets, with risk-weighted assets of $24 million. Core Equity Tier 1 (CET1) capital is $1,100,000, additional Tier I capital is $400,000, and Tier 11 capital is $428,000. The current value of the CET1 ratio is 4.58 percent, the Tier I ratio is 6.25 percent, and the total capital ratio is 8.03 percent. Calculate the new value of CET1, Tier 1 , and total capital ratios for the following transactions. a. The bank repurchases $114,000 of common stock with cash. b. The bank issues $3.4 million of CDs and uses the proceeds to issue category 1 mortgage loans with a loan-to-value ratio of 80 percent. c. The bank receives $514,000 in deposits and invests them in T-bills. d. The bank issues $814,000 in common stock and lends it to help finance a new shopping mall. The developer has an A+credit rating. e. The bankissues $2.4 million in nonqualifying perpetual preferred stock and purchases general obligation municipal bonds. t. Homeowners pay back $5.4 million of mortgages with loan-to-value ratios of 40 percent and the bank uses the proceeds to build new ATMs: 5. Exposures to public-sector entities (PSEs): Genenal obligation exposures to U.S. PSEs Revenue obligation exposures to U.S. PSEs General obligation exposures to non-U.S. PSEs: CRC of 01 CRC of 2 CRC of 3 CRC of 47 OECD member with no CRC Onshore Bank has $34 million in assets, with risk-weighted assets of $24 million. Core Equity Tier 1 (CET1) capital is $1,100,000, additional Tier I capital is $400,000, and Tier II capital is $428,000. The current value of the CET1 ratio is 4.58 percent, the Tier I ratio is 6.25 percent, and the total capital ratio is 8.03 percent. Calculate the new value of CET1, Tier l, and total capital ratios for the following transactions. a. The bank repurchases $114,000 of common stock with cash. b. The bank issues $3.4 million of CDs and uses the proceeds to issue category 1 mortgage loans with a loan-to-value ratio of 80 percent. c. The bank recelves $514,000 in deposits and invests them in T-bills. d. The bank issues $814,000 in common spock and lends it to help finance a new shopping mall. The developer has an A+ credit rating. e. The bank issues $2.4 milition in nonqualifying perpetual preferred stock and purchases general obligation municipal bonds. f. Homeowners pay back $5.4 million of mortgages with loan-to-value ratios of 40 percent and the bank uses the proceeds to build new ATMs. 5. Exposures to public-sector entities (PSEs): Genenal obligation exposures to U.S. PSEs Revenue obligation exposures to U.S. PSEs General obligation exposures to non-U.S. PSEs: CRC of 01 CRC of 2 CRC of 3 CRC of 4.7 OECD member with no CRC Step by Step Solution
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