Question: Compute the Tier 1 Leverage ratio for this bank. Express your answer as a percentage and round it to one decimal. Do not include any

Compute the Tier 1 Leverage ratio for this bank. Express your answer as a percentage and round it to one decimal. Do not include any symbols in the answer (i.e. 0.0642, which is 6.42% is entered as 6.4).

Assets

Liabilities

Cash

5

Deposits

US Treasury securities

6

Subordinated Debt

2

Fannie Mae MBS

18

Residential mortgages

18

Retained earnings

5

Small business loans

47

Common stock

2

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