Calculate the banks capital ratio before and after the


Consider a bank with the following balance sheet (in million dollars):

Asset

Required Reserves $10, Excess Reserves $5, T bills $55, Commercial loans $60

Liability Checkable deposits $100 Bank Capital $30

The bank makes a loan commitment for $6 million to a commercial customer.

Calculate the banks capital ratio before and after the agreement. Calculate the banks risk weighted assets before and after the agreement. (please include explanation) thank you

 

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Finance Basics: Calculate the banks capital ratio before and after the
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