Please calculate Red River National Bank’s total risk-weighted assets, based on the following items that the bank reported on its latest balance sheet. Does the bank appear to have a capital deficiency?
Cash............. $ 75 million
Domestic interbank deposits.... 130 million
U.S. government securities ..... 250 million
Residential real estate loans.... 375 million
Commercial loans........ 520 million
Total assets..........$1,350 million
Total liabilities......... $1,250 million
Total capital.........$100 million

 

Input Area: Problem 05
Balance Sheet Items	$ Amount
Cash	75,000,000
Domestic interbank deposits	130,000,000
U.S. Treasury securities	250,000,000
Residential real estate loans	375,000,000
Commercial loans	520,000,000
Standby letters of Credit	87,000,000
Long term unused loan commitments	145,000,000
Input Area: Problem 06
Types of Capital	$ Amount
Common stock (par value)	5,000,000
Surplus	15,000,000
Undivided profits	30,000,000
Allowance for loan losses	25,000,000
Subordinated debt capital	20,000,000
Intermediate-term preferred stock	5,000,000