What is total rish-based capital ratio and leverage ratio

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National Bank has the following balance sheet (in millions) and has no off-balance-sheet activities.

Assets

Cash 20

Treasury bills 40

Residential mortgages (category 1; loan-to-value ratio = 70%) 600

Business loans 430

Total assets $1,090

Liabilities and Equity

Deposits 980

Subordinated debentures 25

Common stock 45

Retained earnings 40

Total liabilities and equity $1,090

a) what is the CET 1 risk-based ratio?

b) What is the Tier 1 risk-based capital ratio?

c) What is the total rish-based capital ratio?

d) What is the leverage ratio?

e) In what capital risk category would National Bank be placed?

Reference no: EM131848293

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