Nittany Lion Bank has the following balance sheet (in $m), with the risk weights in parentheses....

  

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Nittany Lion Bank has the following balance sheet (in $m), with the risk weights in parentheses. Assets Cash (0%) $21 OECD interbank deposits (20%) $25 Mortgage loans(50%) $70 Consumer loans (100%) $70 Reserve for loan losses __$(1) Total assets $185 Liabilities and Equity. Deposits $176 Subordinated debt (5 years) $2 Cumulative preferred stock_ $2 Equity (common stock)__ $5 Total liabilities and equity $185 Nittany Lion Bank also has the following off-balance sheet item: A $30 million in performance-related standby letter of credit (SLCs) to a public corporation with a conversion factor of 50%. Simplifying assumptions: • Risk weights of all off-balance sheet items are equal to 100%. • Regulator's CET1 ratio for adequate capitalization is 4.5%, Tier 1 ratio is 6.0 %, and Total capital ratio is 8.0%. There are no restrictions on how much subordinated debt and reserves you can count as Tier Il capital. • Items that do not show up on the balance sheet (e.g.. Goodwill) have a value of zero. Answer the following question using the information above. What is Nittany Lion Bank's total risk-weighted assets (in $m)? 215 125 110 185 Nittany Lion Bank has the following balance sheet (in $m), with the risk weights in parentheses. Assets Cash (0%) $21 OECD interbank deposits (20%) $25 Mortgage loans(50%) $70 Consumer loans (100%) $70 Reserve for loan losses __$(1) Total assets $185 Liabilities and Equity. Deposits $176 Subordinated debt (5 years) $2 Cumulative preferred stock_ $2 Equity (common stock)__ $5 Total liabilities and equity $185 Nittany Lion Bank also has the following off-balance sheet item: A $30 million in performance-related standby letter of credit (SLCs) to a public corporation with a conversion factor of 50%. Simplifying assumptions: • Risk weights of all off-balance sheet items are equal to 100%. • Regulator's CET1 ratio for adequate capitalization is 4.5%, Tier 1 ratio is 6.0 %, and Total capital ratio is 8.0%. There are no restrictions on how much subordinated debt and reserves you can count as Tier Il capital. • Items that do not show up on the balance sheet (e.g.. Goodwill) have a value of zero. Answer the following question using the information above. What is Nittany Lion Bank's total risk-weighted assets (in $m)? 215 125 110 185

Answer rating: 100% (QA)

a Compute risk adjusted assets as follows Cash 0 21 OECD inter bank deposits 20 25 50 70 100 70 Tota... View the full answer