The risk-weight of the mortgage portfolio is 20%. Aside from the mortgage portfolio, the bank has $55,000
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The risk-weight of the mortgage portfolio is 20%. Aside from the mortgage portfolio, the bank has $55,000 millions of RWA over its corporate and investment banking business unit and lesser portfolios. The bank common equity is $12 billion. The bank has issued $2 billion in eligible preferred stocks and another $1 billion in contingent convertibles. The bank has finally $5 billion in subordinated debt, half of them qualifying for capital recognition.
a)Compute the % total capital ratio of the bank, differentiate the different tiers and appraise whether the financial institution is adequately capitalised.
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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