Consider a bank with the following balance sheet:


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Consider a bank with the following balance sheet: 1 answer below » Consider a bank with the following balance sheet: Assets Liabilities Required Reserves $8 million Checkable Deposits $100 million Excess Reserves $3 million Bank Capital $6 million T-bills $45 million Commercial Loans $50 million The bank commits to a loan agreement for $10 million to a commercial customer. Calculate the bank’s capital ratio before and after the agreement. Calculate the bank’s risk-weighted assets before and after the agreement. Problems 4 through 11 relate to View complete question » Consider a bank with the following balance sheet: Assets Liabilities Required Reserves $8 million Checkable Deposits $100 million Excess Reserves $3 million Bank Capital $6 million T-bills $45 million Commercial Loans $50 million The bank commits to a loan agreement for $10 million to a commercial customer. Calculate the bank’s capital ratio before and after the agreement. Calculate the bank’s risk-weighted assets before and after the agreement. Problems 4 through 11 relate to a sequence of transactions at Oldhat Financial. View less » Jul 08 2014 12:39 PM

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