Question: Thank you!! Please show calculation steps if needed. or explain for me to understand and follow. THANK YOU 2. Consider a bank with the following

 Thank you!! Please show calculation steps if needed. or explain for

Thank you!! Please show calculation steps if needed. or explain for me to understand and follow. THANK YOU

2. Consider a bank with the following on-balance sheet and off-balance sheets items and their risk weight and conversion factor (for OBS items) (10 points): risk weight Cash $ 42,500 0 U.S. Treasury securities 97,200 0 Deposit balances held at domestic banks 58,650 0.2 Loans secured by first liens on 1- top 4-family residential properties 100,800 0.5 Loans to private corporations 154,000 1.0 Total balance sheet assets 453,150 conversion risk Off-balance sheet (OBS) items: factor weight Standby letters of credit backing municipal and corporate borrowings $ 163,600 0.2 0.2 Long term legally bind credit commitments to private companies 210,800 0.5 1.0 Total off balance sheet items 374,400 a. What are the risk-adjusted on-balance sheet assets of the bank as defined under the Basel ! b. What are the risk-adjusted off-balance sheet assets of the bank as defined under the Basel I? c. What minimum Tier 1 capital and total capital does it need to meet the Basel I requirement? d. Assumes that the risk-adjusted total assets of a bank is $314,890, under Basel III, what are the required Common-Equity Tier 1 capital, required Tier 1 capital, and required total capital not including capital conversion buffer? 2. Consider a bank with the following on-balance sheet and off-balance sheets items and their risk weight and conversion factor (for OBS items) (10 points): risk weight Cash $ 42,500 0 U.S. Treasury securities 97,200 0 Deposit balances held at domestic banks 58,650 0.2 Loans secured by first liens on 1- top 4-family residential properties 100,800 0.5 Loans to private corporations 154,000 1.0 Total balance sheet assets 453,150 conversion risk Off-balance sheet (OBS) items: factor weight Standby letters of credit backing municipal and corporate borrowings $ 163,600 0.2 0.2 Long term legally bind credit commitments to private companies 210,800 0.5 1.0 Total off balance sheet items 374,400 a. What are the risk-adjusted on-balance sheet assets of the bank as defined under the Basel ! b. What are the risk-adjusted off-balance sheet assets of the bank as defined under the Basel I? c. What minimum Tier 1 capital and total capital does it need to meet the Basel I requirement? d. Assumes that the risk-adjusted total assets of a bank is $314,890, under Basel III, what are the required Common-Equity Tier 1 capital, required Tier 1 capital, and required total capital not including capital conversion buffer

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