Question
What is the contribution to the asset base of the following items under the Basel III requirements? a. $10 million cash reserves. b. $50 million
What is the contribution to the asset base of the following items under the Basel III requirements?
a. $10 million cash reserves.
b. $50 million 91-day U.S. Treasury bills.
c. $25 million cash items in the process of collection.
d. $5 million UK government bonds, OECD CRD rated 1.
e. $5 million French short-term government bonds, OECD CRD rated 2.
f. $1 million general obligation bonds.
g. $40 million repurchase agreements (against U.S. Treasuries).
h. $2 million loan to foreign bank, OECD rated 3.
i. $500 million 14 family home mortgages, category 1, loan-to-value ratio 80 percent.
j. $10 million 14 family home mortgages, category 2, loan-to-value ratio 95 percent.
k. $5 million 14 family home mortgages, 100 days past due.
l. $500 million commercial and industrial loans, AAA rated.
m. $500 million commercial and industrial loans, B- rated.
n. $100,000 performance-related standby letters of credit to a AAA rated corporation.
o. $100,000 performance-related standby letters of credit to a municipality issuing general obligation bonds.
p. $7 million commercial letter of credit to a foreign bank, OECD CRC rated 2.
q. $3 million five-year loan commitment to a foreign government, OECD CRC rated 1.
r. $8 million bankers acceptance conveyed to a U.S. AA rated corporation.
s. $17 million three-year loan commitment to a private agent.
t. $17 million three-month loan commitment to a private agent.
u. $30 million standby letter of credit to back an A rated corporate issue of commercial paper.
v. $4 million five-year interest rate swap with no current exposure.
w. $6 million two-year currency swap with $500,000 current exposure.
PLEASE SHOW EXCEL WORK
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started