QUESTION 19 Onshore Bank has $21 million in assets, with risk-adjusted assets of $11 million. Core Equity Tier 1 (CET1) capital is $610,000, additional Tier I capital is $60,000, and Tier II capital is $402,000. The current value of the CET1 ratio is 5.55 percent, the Tier I ratio is 6.09 percent, and the total capital ratio is 9.75 percent a. The bank repurchases $101,000 of common stock with cash. What is the new CET1 ratio? b. The bank issues $2.1 million of CDs and uses the proceeds to issue category 1 mortgage loans with a loan-to-value ratio of 70 percent. (These assets have a 50% risk weight.) What is the new Tier I + Tier II (total capital) ratio? c. The bank receives $501,000 in deposits and invests them in T-bills. What is the new Tier I ratio? d. The bank issues $801,000 in common stock and lends it to help finance a new shopping mall (risk weight 100%). The developer has an A+ credit rating. What is the Tier I + II (total capital) ratio? Homeowners pay back $4.1 million of mortgages with loan-to-value ratios of 50 percent (risk weight 35%) and the bank uses the proceeds to build new ATMs. What is the Tier I ratio