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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. | $ |
Solutions
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 |
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jeff jeffy answered 2 years agoRelated Solutions
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.)
a.
$8 million cash
reserves.
b.
$46 million
91-day U.S. Treasury bills.
c.
$23 million cash
items in the process of collection.
d.
$4 million U.K.
government bonds, OECD CRD rated 1.
e.
$4 million
French short-term government bonds, OECD CRD rated 2....
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Answer in 5 paragraphs with examples. thanks
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Word Count (500
words)
Which of the following statements with regard to classification of a bank’s regulatory capital under Basel...
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I Tier 1 capital includes retained earnings and surpluses
resulting from the issue of common shares, but not mandatory
convertible bonds
II Common Equity Tier 1 (CET1) capital includes retained
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