The following is the book value of the assets of a bank: ...

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Finance

The following is the book value of the assets of a bank:

Asset

Book Value (in millions)

U.S. Treasury securities

$ 50

Municipal general obligation bonds

50

Residential mortgages

400

Commercial loans

200

Total book value

$700

a. Calculate the credit risk-weighted assets using the following information:

Asset

Risk Weight

U.S. Treasury securities

0%

Municipal general obligation bonds

20

Residential mortgages

50

Commercial loans

100

b. What is the minimum core capital requirement?

What is the minimum total capital requirement?

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