Assume the following data relates to Addis Intermational Bank operating in Ethiopla. Assets Book Value Br....
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Assume the following data relates to Addis Intermational Bank operating in Ethiopla. Assets Book Value Br. 250,000 800,000 1000,000 650,000 800,000 Cash in the vault Treasury securities Deposits with foreign banks Investments Loans and advances Total assets Credit Risk Weight ? ? Required: 1. Determine the total minimum capital requirement 2. Determine the capital adequacy ratio 3. Does Addis International Bank fulfill its capital requirement? Justify your answer 20% 50% 100% Br.3,500,000 ASsume further that the share capital of the bank is Br. 80,000 and Retained earnings and amounted Br. 65,000 and Br. 45,000 respectively. Assume the following data relates to Addis Intermational Bank operating in Ethiopla. Assets Book Value Br. 250,000 800,000 1000,000 650,000 800,000 Cash in the vault Treasury securities Deposits with foreign banks Investments Loans and advances Total assets Credit Risk Weight ? ? Required: 1. Determine the total minimum capital requirement 2. Determine the capital adequacy ratio 3. Does Addis International Bank fulfill its capital requirement? Justify your answer 20% 50% 100% Br.3,500,000 ASsume further that the share capital of the bank is Br. 80,000 and Retained earnings and amounted Br. 65,000 and Br. 45,000 respectively.
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The total minimum capital requirement for Addis International Bank can be calculated using the follo... View the full answer
Related Book For
Entrepreneurial Finance
ISBN: 978-1305968356
6th edition
Authors: J. Chris Leach, Ronald W. Melicher
Posted Date:
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