Based on the above information, how would regulators characterize this FI based on the Standardized Approach leverage ratio zones of Basel III?

Hint: Is the FI well capitalized, undercapitalized ( calculate leverage ratio)

Problem 3 Securities (at par) $250 Deposits $975 35 Capital $760 Loans (at par) a) Based on the above information, how would regulators characterize this Fl based on the Standardized Approach leverage ratio zones of Basel lll? Hint: Is the Fl well capitalized, undercapitalized calculate leverage ratio) l b. If problem loans reduce the market value of the loan portfolio by 25 percent, what is the value of regulatory defined (book value) capital? Problem 3 Securities (at par) $250 Deposits $975 35 Capital $760 Loans (at par) a) Based on the above information, how would regulators characterize this Fl based on the Standardized Approach leverage ratio zones of Basel lll? Hint: Is the Fl well capitalized, undercapitalized calculate leverage ratio) l b. If problem loans reduce the market value of the loan portfolio by 25 percent, what is the value of regulatory defined (book value) capital