A banks balance sheet information is shown below (in $000). On...
80.2K
Verified Solution
Link Copied!
Question
Accounting
A banks balance sheet information is shown below (in $000).
On Balance Sheet Items
Face Value
Cash
$
140,600
Short-term government securities (<92 days)
7,300
Long-term government securities (>92 days)
433,400
Federal Reserve stock
11,700
Repos secured by federal agencies
178,000
Claims on U.S. depository institutions
956,900
Loans to foreign banks, OECD CRC rated 2
1,830,000
General obligation municipals
189,000
Claims on or guaranteed by federal agencies
28,400
Municipal revenue bonds
131,900
Residential mortgages, category 1, loan-to-value ratio 75%
6,900,000
Commercial loans
6,567,669
Loans to sovereigns, OECD CRC rated 3
13,500
Premises and equipment
474,000
Off Balance Sheet Items:
Conversion Factor (%)
Face Value
U.S. Government Counterparty
Loan commitments:
<1 year
20
$
300
15 year
50
1,140
Standby letters of credit:
Performance-related
50
200
Direct-credit substitute
100
100
U.S. Depository Institutions Counterparty
Loan commitments:
<1 year
20
100
>1 year
50
3,000
Standby letters of credit:
Performance-related
50
200
Direct-credit substitute
100
56,400
Commercial letters of credit
20
400
State and Local Government Counterparty (revenue municipals)
Loan commitments:
>1 year
50
100
Standby letters of credit:
Performance-related
50
135,400
Corporate Customer Counterparty
Loan commitments:
<1 year
20
3,212,400
>1 year
50
3,046,278
Standby letters of credit:
Performance-related
50
101,543
Direct-credit substitute
100
490,900
Commercial letters of credit
20
78,978
Sovereign Counterparty
Loan commitments, OECD CRC rated 1:
<1 year
20
110,500
>1 year
50
1,225,400
Sovereign Counterparty
Loan commitments, OECD CRC rated 2:
<1 year
20
85,000
>1 year
50
115,500
Sovereign Counterparty
Loan commitments, OECD CRC rated 7:
>1 year
50
30,000
Interest rate market contracts (current exposure assumed to be zero):
<1 year (notional amount)
0
2,000
>15 year (notional amount)
0.5
5,000
To be adequately capitalized, what are the banks CET1, Tier I, and total riskbased capital requirements under Basel III? (Round your answer to the nearest whole dollar amount. (e.g., 32))
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!