Use the following information for questions 1 - 6. Risk Weight Bank Assets Cash and Treasury...
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Use the following information for questions 1 - 6. Risk Weight Bank Assets Cash and Treasury Securities $ 2,000 $ 1,000 $ 1,500 Repurchase Agreements Municipal Bonds Single Family Home Mortgages CMOS Commercial Loans Agricultural Loans Allowance for Loan Loss Bank Buildings Total $ 2,700 $ 2,500 $ 1,500 $ 2,100 $ (300) $ 2,000 $ 15,000 Bank Liabilities 0% Deposits 20% Hot Money 20% Subordinated Debt 50% Common Stock 50% Surplus 100% Retained Earnings 100% 0% 100% 1. Calculate the Tier 1 capital the bank has. 2. Calculate the minimum leverage capital for this bank. 3. Calculate the amount of risk-adjusted assets the bank has. 4. Calculate the minimum required Tier 1 capital for this bank. 5. Calculate the minimum required total capital for this bank. 6. Calculate the total amount of regulatory capital the bank already has. $ LA LA LA LA LA LA $ $ $ $ $ 8,000 6,000 250 100 300 350 $ 15,000 Use the following information for questions 1 - 6. Risk Weight Bank Assets Cash and Treasury Securities $ 2,000 $ 1,000 $ 1,500 Repurchase Agreements Municipal Bonds Single Family Home Mortgages CMOS Commercial Loans Agricultural Loans Allowance for Loan Loss Bank Buildings Total $ 2,700 $ 2,500 $ 1,500 $ 2,100 $ (300) $ 2,000 $ 15,000 Bank Liabilities 0% Deposits 20% Hot Money 20% Subordinated Debt 50% Common Stock 50% Surplus 100% Retained Earnings 100% 0% 100% 1. Calculate the Tier 1 capital the bank has. 2. Calculate the minimum leverage capital for this bank. 3. Calculate the amount of risk-adjusted assets the bank has. 4. Calculate the minimum required Tier 1 capital for this bank. 5. Calculate the minimum required total capital for this bank. 6. Calculate the total amount of regulatory capital the bank already has. $ LA LA LA LA LA LA $ $ $ $ $ 8,000 6,000 250 100 300 350 $ 15,000
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1Tier 1 capital Tier 1 capital Surplus Retained Earnings Common Stock Tier 1 capital 300 350 100 Tie... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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