A bank has total assets of $3 billion, including cash of $1 billion and loan portfolio of
Fantastic news! We've Found the answer you've been seeking!
Question:
A bank has total assets of $3 billion, including cash of $1 billion and loan portfolio of $2 billion. The loan portfolio is comprised of 40% personal loans, 30% auto loans, and 30% small business loans. Personal loans are assigned a risk weight of 100%, auto loans are assigned a risk weight of 50%, and small business loans are assigned a risk weight of 75%. What is the bank's total risk-weighted assets ?
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date: