- Using the following information for Sun-up National Bank, calculate that bank's ratio of total-capital-to-risk-weighted assets...

 

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- Using the following information for Sun-up National Bank, calculate that bank's ratio of total-capital-to-risk-weighted assets under the terms of the Basel I Agreement. Des the bank have sufficient capital? On-Balance-Sheet Items (Assets) Cash U.S. Treasury securities Deposit balances due from other banks Loans secured by first lines on residential property (1- to 4-family dwellings) Loans to corporations Total assets $ 3.5 million 25.6 4.0 19.7 105.3 $158.1 million Off-Balance-Sheet Items Standby letters of credit backing municipals and corporate borrowing Long-term binding commitments to corporate customers Total off-balance- sheet items Total capital $18.1 million 40.2 million $58.3 million $11.8 million - Using the following information for Sun-up National Bank, calculate that bank's ratio of total-capital-to-risk-weighted assets under the terms of the Basel I Agreement. Des the bank have sufficient capital? On-Balance-Sheet Items (Assets) Cash U.S. Treasury securities Deposit balances due from other banks Loans secured by first lines on residential property (1- to 4-family dwellings) Loans to corporations Total assets $ 3.5 million 25.6 4.0 19.7 105.3 $158.1 million Off-Balance-Sheet Items Standby letters of credit backing municipals and corporate borrowing Long-term binding commitments to corporate customers Total off-balance- sheet items Total capital $18.1 million 40.2 million $58.3 million $11.8 million

Answer rating: 100% (QA)

Answer To calculate the banks ratio of total capital to riskweighted assets under the terms of the Basel I Agreement we first need to determine the ri... View the full answer