If a bank has the following ratios, it is Tier 1 leverage = 4.5% Tier 1...
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If a bank has the following ratios, it is Tier 1 leverage = 4.5% Tier 1 risk-based = 8.5% Well capitalized Adequately capitalized Significantly undercapitalized Undercapitalized Tier 1 common equity risk-based = 7% Total capital risk-based = 11% If a bank has the following ratios, it is Tier 1 leverage = 4.5% Tier 1 risk-based = 8.5% Well capitalized Adequately capitalized Significantly undercapitalized Undercapitalized Tier 1 common equity risk-based = 7% Total capital risk-based = 11%
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Th e bank is s igni ficantly u ndercap i tal ize d The Tier 1 leverage ratio is 45 which means that for every 100 in assets the bank has 450 in core c... View the full answer
Related Book For
Bank Management and Financial Services
ISBN: 978-0078034671
9th edition
Authors: Peter Rose, Sylvia Hudgins
Posted Date:
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