Njenge Bank has the following balance sheet (in millions) with the risk weights in parentheses. Liabilities and Equity Deposits Subordinated debt (2.5 years) Assets Cash (0%) K20 OECD Interbank deposits (20%) K25 K3 Mortgage loans Consumer loans Total Assets (50%) K70 (100%) K70 K185 Cumulative preferred stock Equity Total Liabilities & Equity K175 K5 K2 K185 In addition, the bank has K30 million in performance-related standby letters of credit

Njenge Bank has the following balance sheet (in millions) with the risk weights in parentheses. Liabilities and Equity Deposits Subordinated debt (2.5 years) Assets Cash (0%) K20 OECD Interbank deposits (20%) K25 K3 Mortgage loans Consumer loans Total Assets (50%) K70 (100%) K70 K185 Cumulative preferred stock Equity Total Liabilities & Equity K175 K5 K2 K185 In addition, the bank has K30 million in performance-related standby letters of credit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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