SwanBank has assets of $24.28 billion. After applying the regulator-stipulated risk weightings, the institution estimates total...

SwanBank has assets of $24.28 billion. After applying the regulator-stipulated risk weightings, the institution estimates total risk-weighted assets of $13.81 billion.

Assuming Basel III requirements, what is the minimum Tier 1 capital (in $million) required out of SwanBank's total capital requirement?

Select one:

a. $621.45 million

b. $1104.80 million

c. The correct answer is not listed here.

d. $1092.60 million

e. $1456.80 million

Expert Solution

Under Basel III, a bank's tire 1 must be a minimum of 10.5% of it's risk weighted assets :

=10.5%*13.81bn

=1456.8 million

jeff jeffy answered 2 years ago

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