5. Goldman Sachs' B/S (in millions) with NO off-balance sheet activities is as follows: Liabilities and...

 

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5. Goldman Sachs' B/S (in millions) with NO off-balance sheet activities is as follows: Liabilities and Equity Deposits Subordinated debentures Common stock Retained earnings Total liabilities and equity Assets Cash Treasury bills Residential mortgages (category 1; loan-to-value ratio = 70%) Business loans Total assets $30 50 550 430 $1060 a. What is the CET1 risk-based ratio? b. What is the Tier I risk-based capital ratio? c. What is the total risk-based capital ratio? d. What is the leverage ratio? e. In what capital risk category would the bank be placed? $880 35 65 60 $1060 5. Goldman Sachs' B/S (in millions) with NO off-balance sheet activities is as follows: Liabilities and Equity Deposits Subordinated debentures Common stock Retained earnings Total liabilities and equity Assets Cash Treasury bills Residential mortgages (category 1; loan-to-value ratio = 70%) Business loans Total assets $30 50 550 430 $1060 a. What is the CET1 risk-based ratio? b. What is the Tier I risk-based capital ratio? c. What is the total risk-based capital ratio? d. What is the leverage ratio? e. In what capital risk category would the bank be placed? $880 35 65 60 $1060

Answer rating: 100% (QA)

To calculate the capital ratios we need to determine the components of each ratio based on the information provided a CET1 RiskBased Ratio The Common ... View the full answer