Calculate menzies bank risk-based capital ratios

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QUESTION - BANK CAPITAL - Data for Menzies Bank is given below.

Value ($ million)

 

Equity capital

$60

Total regulatory capital

$100

Credit-risk-weighted assets

$620

Market-risk-weighted assets

$120

Operational-risk-weighted assets

$200

Total assets

$1,500

Required -

(i) Calculate Menzies Bank's risk-based capital ratios for Common Equity Tier 1 and total regulatory capital (show all workings).

(ii) Assess whether Menzies Bank has met the Basel Ill minimum requirements (including the capital conservation buffer) for each of the two (2) capital ratios calculated in part (i).

Reference no: EM133069965

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