Question: Need help question 13 Not sure which ones are the non tier 1 capital for question c Tous LSC enapter 10 0 & 13. Mercantile

Need help question 13

Need help question 13 Not sure which ones are the non tier

Not sure which ones are the non tier 1 capital for question c

Tous LSC enapter 10 0 & 13. Mercantile Bank has the following balance sheet (in millions of dollars) and has no off- balance-sheet or securitisation activities. Assets Cash Australian Treasury Bonds Non-insured standard residential mortgages with LVR of 84% Other loans rated BB+ Total assets Liabilities and equity $20 Deposits 40 Subordinated debt 600 Ordinary shares $980 40 40 430 Retained earnings $1090 Total liabilities and equity 30 S1090 (a) What is the value of the regulated capital measures (i.e. common equity Tier 1 total Tier 1. total capital? (b) What is the value of credit-risk-weighted assets? (e) Assuming that operational risk and market risk are zero, calculate the three capital adequacy ratios. 18. Identify and discuss the problems in the risk-based capital approach to measuring capital 0428561

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