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What is the contribution to the asset base of the following items under the Basel III...

What is the contribution to the asset base of the following items under the Basel III requirements? (Leave no cells blank - be certain to enter "0" wherever required. Enter your answers in dollars not in millions. (e.g., 999,888,000))

Contribution to Risk Weighted assets
a. $24 million cash items in the process of collection. $
b. $10 million repurchase agreements (against U.S. Treasuries). $
c. $5 million 1-4 family home mortgages, 100 days past due. $
d. $200,000 performance-related standby letters of credit to a municipality issuing general obligation bonds. $
e. $16 million three-year loan commitment to a private agent. $
f. $5 million two-year currency swap with $400,000 current exposure. $

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Expert Solution

Contribution to Risk Weighted assets credit equivalent amount Risk weight
a. $24 million cash items in the process of collection. 20% $ 4,800,000.00
b. $10 million repurchase agreements (against U.S. Treasuries). 20% $ 2,000,000.00
c. $5 million 1-4 family home mortgages, 100 days past due. 50% $ 2,500,000.00
d. $200,000 performance-related standby letters of credit to a municipality issuing general obligation bonds. 50 100% $    100,000.00
e. $16 million three-year loan commitment to a private agent. 50 100% $ 8,000,000.00
f. $5 million two-year currency swap with $400,000 current exposure. 100% of current exposure $    400,000.00

WORKINGS

jeff jeffy answered 2 years ago
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