Please do not provide answer in image formate thank you.Consider the balance sheet of a bank below. Use the risk-weight Table set by the Basel Accord (below) to answer the questions Basel Accord- Risk-weighted assets and risk-based capital requirementsConsider the balance sheet of a bank below. Use the risk-weight Table set by the Basel Accord (below) to answer the questions.AssetsLiabilitiesMoney Market Deposits 92 mCapitalReservesT-billsMortgages (commercial)Commercial Loans10 mAssets40 m30 m1. What is the capital ratio of this bank?2. Calculate the risk-weighted asset amount.Cash/reserves/govt securities20 m3. What is the risk-based capital ratio?4. Does the bank meet the 8% risk-based capital ratio requirement?Table: Four categories of assets and their risk weightBank/OECD loansMuni bonds/residential mortgagesCommercial loans/commercial mortgages/consumer loans8 mRisk-weight0%20%50%100%

The modern economy is heavily reliant on the banking industry. Banks accept consumer funds and lend…

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Consider the balance sheet of a bank below. Use the risk-weight Table set by the Basel Accord (below) to answer the questions

Basel Accord- Risk-weighted assets and risk-based capital requirements
Consider the balance sheet of a bank below. Use the risk-weight Table set by the Basel Accord (below) to answer the questions.
Assets
Liabilities
Money Market Deposits 92 m
Capital
Reserves
T-bills
Mortgages (commercial)
Commercial Loans
10 m
Assets
40 m
30 m
1. What is the capital ratio of this bank?
2. Calculate the risk-weighted asset amount.
Cash/reserves/govt securities
20 m
3. What is the risk-based capital ratio?
4. Does the bank meet the 8% risk-based capital ratio requirement?
Table: Four categories of assets and their risk weight
Bank/OECD loans
Muni bonds/residential mortgages
Commercial loans/commercial mortgages/consumer loans
8 m
Risk-weight
0%
20%
50%
100%

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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