Calculate the banks risk-weighted assets

Assignment Help Finance Basics

Reference no: EM1344367

1
New bank started its first day of operations with $6 million in capital .A total of $100 million in checkable deposits is received .The bank makes a $25 million commercial loan and another $25 million in mortgage loans .If required reserves are 8%, what does the bank balance sheet looks like.

2
New bank decides to invest $45 million in 30 day T-Bills . The T-Bills are currently trading at $4,986.70(including commissions) for a $5,000 face value instrument .How many do they purchase ? What does the balance sheet look like?

3
Consider a failing bank ,A deposit of 350,000 is worth how much if the FDIC uses the payoff method? The purchase and assumption method? which is more costly to tax payers?

4
If the below bank makes a loan commitment for $10 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.
Assets Liabilities
Required Reserves 8 million Checkable deposits $100 million
Excess Reserves 3 million Bank Capital $6 million
T Bills 45 million
Commercial Loans 50 million

Reference no: EM1344367

Questions Cloud

Code to sum of all the elements of the array : Write some code that places the sum of all the elements of the array x into total. Declare any variables that you need.

Auditors and their predictions-bankruptcy of client : For discussion purposes counter statement that it is worse for auditors to incorrectly predict bankruptcy than when auditors fail to predict bankruptcy.

Explaining physical material on which computer keeps data : Storage is the physical material on which a computer keeps data, instructions, and information?

Explaining users a cell can support blocking rate : Find out how many users a cell can support for a 5% call---blocking rate. Assume that each user produces 35mE of load in the busy hour.

Calculate the banks risk-weighted assets : New bank started its first day of operations with $6 million in capital. A total of 100 million dollar in checkable deposits is received. The bank makes a 25 million dollar commercial loan and another $25 million in mortgage loans.

Explaining components of computing environment : According to Raggad's taxonomy of information security, a computing environment is made up of ?ve continuously interacting components namely; activities, people, data, technology and networks.

Determining auto industry-bankrupt : The auto industry does need the bail out. It is necessary to protect millions of jobs across the US (one out of ten American jobs is associated with auto industry).

Optional sources of energy : Optional sources of energy are being discussed as part of the national debate. One of the sources is wind power. You may look into a search engine of your choice for articles on wind power.

Uml state diagram situations in chess game : You are required to draw a UML state diagram to represent the following situations in Chess game.

User Account

All Pages