A bank has the following balance sheet ($M) and no off-balance sheet activities: $M Liabilities & Equity
Question:
A bank has the following balance sheet ($M) and no off-balance sheet activities:
$M Liabilities & Equity $M
Cash 100 Retail Deposits 1550
Treasury securities 250 Subordinated Debt 75
Residential mortgages, category 1, 70% LTV 700 Common Stock 65
Residential mortgages, category 2, 70% LTV 300 Retained Earnings 40
Commercial Loans 400 Noncumulative perpetual preferred stock 20
Total Assets 1750 Total Liabilities & Equity 1750
What is the CET1 risk-based ratio?
Financial Markets and Institutions
ISBN: 978-0077861667
6th edition
Authors: Anthony Saunders , Marcia Cornett