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Using the following information for Gold Star National Bank, calculate that bank's ratios of Tier 1 capital-to-risk-weighted assets and total-capital-to-risk-weighted assets. Does the bank have

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Using the following information for Gold Star National Bank, calculate that bank's ratios of Tier 1 capital-to-risk-weighted assets and total-capital-to-risk-weighted assets. Does the bank have sufficient capital according to Basel? On-Balance-Sheet Items and Credit-Equivalent Off-Balance Sheet Items: 0 Percent Risk-Weighting Category Cash U.S Treasury securities Total 50.00=5 20 Percent Risk-Weighting Category Deposit balances due from other banks $ 0.20=5 50 Percent Risk-Weighting Category Loans secured by first liens on residential property 0.50=5 The bank's capital ratio is: Tier 1 capital-to-total risk-weighted assets =Risk-weightedaxsetsincludingoff-balance-sheetitemsTierIcapital Total Capital to risk weighted assets = Total Capital Risk Weighted Assets including off balance sheet items Tier 1 capital Risk-weighted assets = Total capital Risk-weighted Assets = 1 Using the following information for Gold Star National Bank, calculate that bank's ratios of Tier 1 capital-to-risk-weighted assets and total-capital-to-risk-weighted assets. Does the bank have sufficient capital according to Basel? On-Balance-Sheet Items and Credit-Equivalent Off-Balance Sheet Items: 0 Percent Risk-Weighting Category Cash U.S Treasury securities Total 50.00=5 20 Percent Risk-Weighting Category Deposit balances due from other banks $ 0.20=5 50 Percent Risk-Weighting Category Loans secured by first liens on residential property 0.50=5 The bank's capital ratio is: Tier 1 capital-to-total risk-weighted assets =Risk-weightedaxsetsincludingoff-balance-sheetitemsTierIcapital Total Capital to risk weighted assets = Total Capital Risk Weighted Assets including off balance sheet items Tier 1 capital Risk-weighted assets = Total capital Risk-weighted Assets = 1

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