f. ABC Bank has the following balance sheet (in millions) and has no off-balance-sheet exposure. Assets Liabilities and
Posted: Sun Apr 10, 2022 8:42 am
f. ABC Bank has the following balance sheet (in millions) and has no off-balance-sheet exposure. Assets Liabilities and Equity Cash $20 $960 Deposits Subordinated debt Treasury bills 40 25 Residential mortgages Common stock 45 Business loans 430 40 Retained earnings Total liabilities and equity Total assets $1,090 $1,090 Total Risk Weighted Assets are $730. i) What is the Tier 1 risk-based capital ratio? ii) What is the Capital Adequacy Ratio (CAR)? iii) What is the Tier 1 leverage ratio?