First Bank (FB) has the following balance sheet (numbers in millions of $) with the risk...
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First Bank (FB) has the following balance sheet (numbers in millions of $) with the risk weights in parentheses and has no off-balance-sheet activities. Assets Cash (0%) T-bills (0%) OECD interbank deposits (20%) Mortgage loans (50%) Consumer loans (100%) 50 40 70 240 600 1000 Liabilities and Equity Deposits Subordinated debt (Tier II) Cum. preferred stock (Tier I) Retained earnings (CET1) Common stock (CET1) a) (5 points) Compute the CET1 risk-based capital ratio for FB. b) (5 points) Compute the Tier I risk-based capital ratio for FB. c) (5 points) Compute the total risk-based capital ratio for FB. d) (5 points) Compute the the leverage ratio for FB. 865 35 30 30 40 1000 e) (5 points) In what capital risk category would the bank be placed under Basel III? First Bank (FB) has the following balance sheet (numbers in millions of $) with the risk weights in parentheses and has no off-balance-sheet activities. Assets Cash (0%) T-bills (0%) OECD interbank deposits (20%) Mortgage loans (50%) Consumer loans (100%) 50 40 70 240 600 1000 Liabilities and Equity Deposits Subordinated debt (Tier II) Cum. preferred stock (Tier I) Retained earnings (CET1) Common stock (CET1) a) (5 points) Compute the CET1 risk-based capital ratio for FB. b) (5 points) Compute the Tier I risk-based capital ratio for FB. c) (5 points) Compute the total risk-based capital ratio for FB. d) (5 points) Compute the the leverage ratio for FB. 865 35 30 30 40 1000 e) (5 points) In what capital risk category would the bank be placed under Basel III?
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