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What are the bank’s total risk-weighted assets

What are the bank’s total risk-weighted assets

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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What are the bank’s total risk-weighted assets?
National Commercial Bank reports the following items on its balance sheet: cash RO 200 million; government securities RO 150 million; customer deposits RO 10o million; residential real-estate loans RO 300 million, and private loans RO 350 million. Its off- balance-sheet items include: standby credit letters RO 30 million and long-term credit commitments to corporations, RO 160 million. 1) What are the bank's total risk-weighted assets? 00 son RISK WEICHTS on balance sheet Cash 0% Government Securities 0% Deposits at domestic banks 20% Residential Real Estate Loans s0% Loans to private companies off balance sheet 100% Long term credit commitments to corporations Standby Letters of Credit Conversion factor for Standby Letters of Credit 100% 20% Conversion factor for Long term credit commitments to corporations
Transcribed Image Text:National Commercial Bank reports the following items on its balance sheet: cash RO 200 million; government securities RO 150 million; customer deposits RO 10o million; residential real-estate loans RO 300 million, and private loans RO 350 million. Its off- balance-sheet items include: standby credit letters RO 30 million and long-term credit commitments to corporations, RO 160 million. 1) What are the bank's total risk-weighted assets? 00 son RISK WEICHTS on balance sheet Cash 0% Government Securities 0% Deposits at domestic banks 20% Residential Real Estate Loans s0% Loans to private companies off balance sheet 100% Long term credit commitments to corporations Standby Letters of Credit Conversion factor for Standby Letters of Credit 100% 20% Conversion factor for Long term credit commitments to corporations
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