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What is the leverage ratio for Oldhat Financial

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Reference no: EM132707431

Question - Oldhat Financial starts it's day of operations with $11 million in capital. A total of $125 million in chequable deposits are received. The bank makes a $30 million commercial loan and another $60 million in mortgages with the following terms: 200 standard 30-year fixed rate mortgages with a nominal annual rate of 5.25% each for 300,000. Assume that desired reserves are 8%.

Required -

a. Make Bank's balance sheet.

b. What is the leverage ratio for Oldhat Financial? Is it well capitalized?

c. Calculate the risk-weighted assets of Oldhat Financial after the first day.

d. Calculate the risk-weighted capital ratio after the first day.

Reference no: EM132707431

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