Question: Problem 1 3 - 1 3 ( LG 1 3 - 7 ) A bank s balance sheet information is shown below ( in $

Problem 13-13(LG 13-7) A banks balance sheet information is shown below (in $000). On-Balance-Sheet ItemsFace ValueCash$ 128,600Short-term government securities (<92 days)6,100Long-term government securities (>92 days)421,400Federal Reserve stock10,500Repos secured by federal agencies166,000Claims on U.S. depository institutions944,900Loans to foreign banks, OECD CRC rated 21,710,000General obligation municipals177,000Claims on or guaranteed by federal agencies27,200Municipal revenue bonds119,900Residential mortgages, category 1, loan-to-value ratio 75%5,700,000Commercial loans5,367,669Loans to sovereigns, OECD CRC rated 312,300Premises and equipment462,000 Off-Balance-Sheet ItemsConversion Factor (%)Face ValueU.S. Government CounterpartyLoan commitments:<1 year20$ 30015 year501,140Standby letters of credit:Performance-related50200Direct-credit substitute100100U.S. Depository Institutions CounterpartyLoan commitments:<1 year20100>1 year503,000Standby letters of credit:Performance-related50200Direct-credit substitute10056,400Commercial letters of credit20400State and Local Government Counterparty (revenue municipals)Loan commitments:>1 year50100Standby letters of credit:Performance-related50135,400Corporate Customer CounterpartyLoan commitments:<1 year203,212,400>1 year503,046,278Standby letters of credit:Performance-related50101,543Direct-credit substitute100490,900Commercial letters of credit2078,978Sovereign CounterpartyLoan commitments, OECD CRC rated 1:<1 year20110,500>1 year501,225,400Sovereign CounterpartyLoan commitments, OECD CRC rated 2:<1 year2085,000>1 year50115,500Sovereign CounterpartyLoan commitments, OECD CRC rated 7:>1 year5030,000Interest rate market contracts (current exposure assumed to be zero):<1 year (notional amount)02,000>15 year (notional amount)0.55,000 To be adequately capitalized, what are the banks CET1, Tier I, Tier II, and total riskbased capital requirements under Basel III? Note: Round your answers to the nearest whole dollar amount. (e.g.,32)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!