Question
Use the following information for questions a) f). Bank Assets Risk Weight Bank Liabilities Cash and Treasury Securities $8,000 0% Deposits $32,000 Municipal Bonds
- Use the following information for questions a) – f).
| Bank Assets | Risk Weight | Bank Liabilities | ||
| Cash and Treasury Securities | $8,000 | 0% | Deposits | $32,000 |
| Municipal Bonds | $6,000 | 20% | Hot Money | $25,000 |
| Repurchase Agreements | $4,000 | 20% | Subordinated Debt | $1,000 |
| CMOs | $10,000 | 50% | Common Stock | $1,000 |
| Single Family Home Mortgage | $15,000 | 50% | Surplus | $1,200 |
| Commercial Loans | $10,000 | 100% | Retained Earnings | $1,800 |
| Agriculture Loans | $5,000 | 100% | ||
| Allowance for Loan Loss | ($3,000) | 0% | ||
| Bank Buildings | 7,000 | 100% | ||
| Total | $62,000 | $62,000 | ||
- How much Tier 1 capital does the bank have?
- What is the minimum leverage capital for this bank?
- What is the amount of risk-adjusted assets for the bank?
- What is the minimum Tier 1 capital for this bank is?
- What is the minimum total capital for this bank?
- What is the total amount of the bank's regulatory capital?
Step by Step Solution
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1 Tier 1 Capital Tier 1 capital consists of common equity Tier 1 capital and additional Tier 1 capit...
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Fundamental accounting principle
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
21st edition
1259119831, 9781259311703, 978-1259119835, 1259311708, 978-0078025587
