Reference no: EM13883839
Onshore Bank has $29 million in assets, with risk-adjusted assets of $19 million. CET1 capital is $900,000, additional Tier I capital is $250,000, and Tier II capital is $418,000.
How will each of the following transactions affect the value of the CET1, Tier I, and total capital ratios? What will the new value of each ratio be?
The current value of the CET1 ratio is 4.74 percent, the Tier I ratio is 6.05 percent, and the total capital ratio is 8.25 percent.
a. The bank repurchases $100,000 of common stock with cash.
b. The bank issues $2.9 million of CDs and uses the proceeds to issue category 1 mortgage loans with a loan-to-value ratio of 70 percent.
c. The bank receives $509,000 in despotism and invests them in T-bills.
d. The bank issues $809,000 in common stock and lends it to help finance a new shopping mall. The developer has an A+ credit rating.
e. The bank issues $1.9 million in non qualifying perpetual preferred stock and purchases general obligation municipal bonds.
f. Homeowners pay back $4.9 million of mortgages with loan-to-value ratios of 50 percent and the bank uses the proceeds to build new ATM's.
|
Describe the activities that take place in the supply chain
: Describe the activities that take place in the supply chain of a manufacturing firm.
|
|
Justice can be predicted of individuals and of collectives
: 1) Justice can be predicted of individuals and of collectives. For example the sentences, "Jane is just" and "Canada is just", are both meaningful. The Republic teaches that the word means the same thing in both sentences. How does it do that? Starte..
|
|
Design a suitable exchanger for duty
: Gas oil at 200 °C is to be cooled to 40 °C. The oil flow rate is 22,500 kg/h. Cooling water is available at 30 °C and the temperature rise is to be limited to 20 °C. The pressure drop allowance for each stream is 100 kN/m2 . Design a suitable exch..
|
|
Describe the benefits to the consumer of b2c sales
: Describe the benefits to the consumer of B2C sales.
|
|
Risk-adjusted assets-transactions affect the value
: Onshore Bank has $29 million in assets, with risk-adjusted assets of $19 million. CET1 capital is $900,000, additional Tier I capital is $250,000, and Tier II capital is $418,000. How will each of the following transactions affect the value of the CE..
|
|
Three basic propositions in standard utilitarianism
: There are three basic propositions in standard Utilitarianism (Please be sure to listen to Mill's audio lecture before joining this threaded discussion):Actions are judged right and wrong solely on their consequences;that is, nothing else matters exc..
|
|
Pestle and opportunities and feasibility analysis
: PESTLE and Opportunities and Feasibility Analysis.
|
|
Describe the tissue culture techniques
: Describe the tissue culture techniques and what are the advantages of tissue culture over conventional methods of plant breeding in crop improvement programmers
|
|
How does the use of html, urls, domain names
: How does the use of HTML, URLs, domain names, and SSL contribute to an Internet that can be used world wide?
|