Question
This is the table extract (risk weighted assets is the last column) Asset Amount Risk Weight riskweightas ES Funds 4.5 0 T-notes and CG bonds
This is the table extract (risk weighted assets is the last column)
Asset Amount Risk Weight riskweightas
ES Funds 4.5 0
T-notes and CG bonds 5.5 0
Home loans (LVR <80%) 190 75 142.5
Home loans (LVR >85%) 60 100 60
Business loans 150 100 150
Total 410 352.5
The bank has the following types of capital:
CET1 = $20b = 5.7% ,
Total Tier 1 = $24.1b = 6.8%,
Total Equity = $25.5b.=7.2%
Does the bank meet its capital adequacy requirements?
Yes,everything is fine.
No,it is violating all minimum capital adequacy ratios
No,it has enough total capital but insufficient CET1
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