Question: Refer to Table 1 3 - 2 8 . Onshore Bank has $ 2 9 million in assets, with risk - weighted assets of $
Refer to Table
Onshore Bank has $ million in assets, with riskweighted assets of $ million. Core Equity Tier CET capital is $ additional Tier I capital is $ and Tier II capital is $ The current value of the CET ratio is percent, the Tier I ratio is percent, and the total capital ratio is percent.
Calculate the new value of CET Tier I, and totalcapital ratios for the following transactions.
a The bank repurchases $ of common stock with cash.
b The bank issues $ million of CDs and uses the proceeds to issue category mortgage loans with a loantovalue ratio of percent.
c The bank receives $ in deposits and invests them in Tbills.
d The bank issues $ in common stock and lends it to help finance a new shopping mall. The developer has an credit rating.
e The bank issues $ million in nonqualifying perpetual preferred stock and purchases general obligation municipal bonds.
f Homeowners pay back $ million of mortgages with loantovalue ratios of percent and the bank uses the proceeds to build new ATMs.
Complete this question by entering your answers in the tabs below.
Required
Required B
Required C
Required D
Required
The bank issues $ in common stock and lends it to help finance a new shopping mall. The developer has an credit rating. Round your percentage answers to decimal places.
tableCET ratio,,
Please answer Part D E F please
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
