Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What is the contribution to the asset base of the following items under the Basel III requirements? (Leave no cells blank - be certain to

image text in transcribed
image text in transcribed
What is the contribution to the asset base of the following items under the Basel III requirements? (Leave no cells blank - be certain to enter " 0 " wherever required. Enter your answers in dollars not in millions.) 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%, j. $10 million 1-4 family home mortgages, category 2 , ioan-to-value ratio 95%. k. $5 million 1.4 family home mortgages, 100 days past due. l. $500 million commercial and industrial loans, AAA-rated. m. $500 million commerclal and industrial loans, B-rated. n. $100,000 performance-related standby letters of credit to a AA-rated corporation. 0. $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. f. $8 million bankers' acceptance conveyed to a U.S. AA-rated corporation. 5.$17 million three-year loan commitment to a private agent. t. $17 million three-month loan commitment to a private agent. u. $30 miltion standby letter of credit to back an A-rated corporate issue of commercial paper. v. $4 milion five-year interest rate swap with no current exposure. w. $6 million two-year currency 5 wap with $500,000 current exposure. \begin{tabular}{|c|r|} \hline & \multicolumn{1}{|c|}{ Basel III Asset Base } \\ \hline a. & \\ \hline b. & 0 \\ \hline c. & 0 \\ \hline d. & 25,000,000 \\ \hline e. & \\ \hline f. & \\ \hline g. & \\ \hline h. & \\ \hline i. & \\ \hline f. & \\ \hline k. & \\ \hline L. & \\ \hline m. & \\ \hline n. & \\ \hline o. & \\ \hline p. & \\ \hline q. & \\ \hline c. & \\ \hline s. & \\ \hline t. & \\ \hline u. & \\ \hline v. & \\ \hline w. & \\ \hline \end{tabular}

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials Of Investments

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

6th Edition

0073226386, 978-0073226385

More Books

Students also viewed these Finance questions

Question

=+What are the states of nature?

Answered: 1 week ago

Question

8.2 Explain the purpose of onboarding programs.

Answered: 1 week ago