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Asset Cash Reserve Marketable securities Inventory Corporate Loans Loans to wealth management Mortgage Unsecured loan Loan to PLC Consumer loan N/R Land Equipments Total Assets Narumi Bank Balance Sheet $ 10000 3000 8000 2000 80000 30000 30000 20000 35000 15000 1000 2000 1000 237000 Liabilities & OE Demand deposit Time deposit Other borrowing Accruals N/P Total Liabilities OE Total Liabilities & OE $ 70000 90000 55000 2000 1000 218000 19000 237000 Tier 1 capital is $20000 Tier 2 capital is $15000 Off balance sheet items Standby letter of credit. Total off balance sheet $ Long term credit commitments 25000 15000 According to BASEL I, 40000 (SLC Conversion factor 20%, Unused loan commitment conversion factor 20%) (Risk-weighting category: 0% for cash, reserve and marketable securities, 20% for Deposit at other banks and SLC, 50% for home loans, 100% for all loans, Unused commitment) You need to find out if the Narumi Bank is BASEL I compliant and at the same time their interest rate GAP status. If they are not BASEL I compliant, what do they need to do to ensure compliance? Also, if the government increases or decreases treasury bill yield, how will that affect the bank's NIM? You need to be very specific about your recommendations. Activate Windows Go to Settings to activate Windows. Asset Cash Reserve Marketable securities Inventory Corporate Loans Loans to wealth management Mortgage Unsecured loan Loan to PLC Consumer loan N/R Land Equipments Total Assets Narumi Bank Balance Sheet $ 10000 3000 8000 2000 80000 30000 30000 20000 35000 15000 1000 2000 1000 237000 Liabilities & OE Demand deposit Time deposit Other borrowing Accruals N/P Total Liabilities OE Total Liabilities & OE $ 70000 90000 55000 2000 1000 218000 19000 237000 Tier 1 capital is $20000 Tier 2 capital is $15000 Off balance sheet items Standby letter of credit. Total off balance sheet $ Long term credit commitments 25000 15000 According to BASEL I, 40000 (SLC Conversion factor 20%, Unused loan commitment conversion factor 20%) (Risk-weighting category: 0% for cash, reserve and marketable securities, 20% for Deposit at other banks and SLC, 50% for home loans, 100% for all loans, Unused commitment) You need to find out if the Narumi Bank is BASEL I compliant and at the same time their interest rate GAP status. If they are not BASEL I compliant, what do they need to do to ensure compliance? Also, if the government increases or decreases treasury bill yield, how will that affect the bank's NIM? You need to be very specific about your recommendations. Activate Windows Go to Settings to activate Windows.
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Related Book For
Intermediate Accounting
ISBN: 978-0470423684
13th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
Posted Date:
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