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Homework answers / question archive / Onshore Bank has $24 million in assets, with risk-adjusted assets of $14 million

Onshore Bank has $24 million in assets, with risk-adjusted assets of $14 million

Finance

Onshore Bank has $24 million in assets, with risk-adjusted assets of $14 million. Core Equity Tier 1 (CET1) capital is $750,000, additional Tier I capital is $130,000, and Tier II capital is $408,000. The current value of the CET1 ratio is 5.36 percent, the Tier I ratio is 6.29 percent, and the total capital ratio is 9.2 percent.

 

Calculate the new value of CET1, Tier I, and total capital ratios for the following transactions.

 

The bank issues $804,000 in common stock and lends it to help finance a new shopping mall. The developer has an A+ credit rating. (Round your answers to 2 decimal places. (e.g., 32.16))

 

CET1 ratio   ______________%

Tier I ratio   ___________________%

Total capital ratio __________________%

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