In: Accounting
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. |
f. | $3 million general obligation bonds. |
g. | $40 million repurchase agreements (against U.S. Treasuries). |
h. | $3 million loan to foreign bank, OECD rated 3. |
i. | $460 million 1-4 family home mortgages, category 1, loan-to-value ratio 80%. |
j. | $8 million 1-4 family home mortgages, category 2, loan-to-value ratio 95%. |
k. | $4 million 1-4 family home mortgages, 100 days past due. |
l. | $460 million commercial and industrial loans, AAA rated. |
m. | $460 million commercial and industrial loans, B- rated. |
n. | $300,000 performance-related standby letters of credit to a AAA rated corporation. |
o. | $300,000 performance-related standby letters of credit to a municipality issuing general obligation bonds. |
p. | $6 million commercial letter of credit to a foreign bank, OECD CRC rated 2. |
q. | $2 million five-year loan commitment to a foreign government, OECD CRC rated 1. |
r. | $3 million bankers’ acceptance conveyed to a U.S., AA rated corporation. |
s. | $10 million three-year loan commitment to a private agent. |
t. | $10 million three-month loan commitment to a private agent. |
u. | $20 million standby letter of credit to back an A rated corporate issue of commercial paper. |
v. | $8 million five-year interest rate swap with no current exposure. |
w. | $7 million two-year currency swap with $600,000 current exposure. |
Particulars | Basel III | US |
$8 million cash reserves | 0 | $8000000 |
$46 million 91-day U.S. Treasury bills. | 0 | $46000000 |
$23 million cash items in the process of collection. | $3000000 | 0 |
$4 million U.K. government bonds, OECD CRD rated 1. | $1000000 | $4000000 |
$4 million French short-term government bonds, OECD CRD rated 2. | $2000000 | $4000000 |
$3 million general obligation bonds. | ||
$40 million repurchase agreements (against U.S. Treasuries). | $8000000 | $40000000 |
$3 million loan to foreign bank, OECD rated 3. | $3000000 | $5000000 |
$460 million 1-4 family home mortgages, category 1, loan-to-value ratio 80%. | $230000000 | $460000000 |
$8 million 1-4 family home mortgages, category 2, loan-to-value ratio 95%. | $4000000 | $8000000 |
$4 million 1-4 family home mortgages, 100 days past due. | $4000000 | 0 |
$460 million commercial and industrial loans, AAA rated. | $460000000 | $460000000 |
$460 million commercial and industrial loans, B- rated. | $460000000 | $460000000 |