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1. What is the banks risk-adjusted asset total?

2. What are the banks capital categories?

CET1 =

Tier 1 =

Total capital (Tier 1 + Tier 2) =

3. Using the information from parts 1 and 2 above, what are the banks risk-adjusted capital ratios?

CET1 ratio =

Tier 1 ratio =

Total capital ratio =

4. Into which capitalization category does this bank fall?

Securities Markets (FIN 4233) Risk-Adjusted Capital Adequacy Homework #20-21, 20 points due 11:59 p.m., Thursday, 11/29/18 Assets Cash Due from depository institutions Securities 20,000,000 7,995,000 US Treasury securities Repurchase agreements Fed Funds sold 129,007,000 818,000 222,000,000 Loans Residential mortgage Commercial loans Consumer loans Credit card 197,776,000 292,452,000 98,374,000 91,068,000 318,000,000 1,377,490,000 Plant & Equipment Total Assets Liabilities & Equity Deposits Demand deposits Time deposits 630,000,000 692,990,000 Securities Fed Funds purchased Reverse repurchase agreements 0 Discount Window loans Subordinated debentures Preferred stock Limited-life preferred Perpetual preferred 12,000,000 13,000,000 20,000,000 3,500,000 Common stock Undivided profits Reserves Reserve for loan losses Reserve for lease losses Capital reserves 3,500,000 1,000,000 1500,000 1,377,490,000 Total Liabilities & Equity Securities Markets (FIN 4233) Risk-Adjusted Capital Adequacy Homework #20-21, 20 points due 11:59 p.m., Thursday, 11/29/18 Assets Cash Due from depository institutions Securities 20,000,000 7,995,000 US Treasury securities Repurchase agreements Fed Funds sold 129,007,000 818,000 222,000,000 Loans Residential mortgage Commercial loans Consumer loans Credit card 197,776,000 292,452,000 98,374,000 91,068,000 318,000,000 1,377,490,000 Plant & Equipment Total Assets Liabilities & Equity Deposits Demand deposits Time deposits 630,000,000 692,990,000 Securities Fed Funds purchased Reverse repurchase agreements 0 Discount Window loans Subordinated debentures Preferred stock Limited-life preferred Perpetual preferred 12,000,000 13,000,000 20,000,000 3,500,000 Common stock Undivided profits Reserves Reserve for loan losses Reserve for lease losses Capital reserves 3,500,000 1,000,000 1500,000 1,377,490,000 Total Liabilities & Equity

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