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What is the CET1 risk-based ratio? A bank has the following balance sheet ($M) and no off-balance sheet activities SM 1550 Cash Treasury securities Residential
What is the CET1 risk-based ratio?
A bank has the following balance sheet ($M) and no off-balance sheet activities SM 1550 Cash Treasury securities Residential mortgages, category 1, 55% LTV Residential mortgages, category 2, 70% LTV Commercial Loans Total Assets SM Liabilities & Equity 100 Retail Deposits 250 Subordinated Debt 700 Common Stock 300 Retained Earnings 400 Noncumulative perpetual preferred stoc 1750 Total Liabilities & Equity 75 65 40 20 1750Step by Step Solution
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