The bank issues a $25 million commercial loan and another $50 million in mortgages, with the…


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The bank issues a $25 million commercial loan and another $50 million in mortgages, with the… 1 answer below » 1. Oldhat Financial started its first day of operations with $9 million in capital. $130 million in checkable deposits are received. The bank issues a $25 million commercial loan and another $50 million in mortgages, with the following terms: ? Mortgages: 200 standard 30-year, fixed-rate with a nominal annual rate of 5.25% each for $250,000. ? Commercial loan: Three-year loan, simple interest paid monthly at 0.75% per month. If required reserves are 8%, what does the bank balance sheet look like? Ignore any loan loss reserves. How well-capitalized is the bank? 2. Calculate the risk-weighted View complete question » 1. Oldhat Financial started its first day of operations with $9 million in capital. $130 million in checkable deposits are received. The bank issues a $25 million commercial loan and another $50 million in mortgages, with the following terms: ? Mortgages: 200 standard 30-year, fixed-rate with a nominal annual rate of 5.25% each for $250,000. ? Commercial loan: Three-year loan, simple interest paid monthly at 0.75% per month. If required reserves are 8%, what does the bank balance sheet look like? Ignore any loan loss reserves. How well-capitalized is the bank? 2. Calculate the risk-weighted assets and risk-weighted capital ratio after Oldhat’s first day. View less » Jul 08 2014 12:39 PM

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