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Question: A bank has the following assets: $200 million in U.S. Treasury securities (0 percent risk-weight category), $400 million in Fannie Mae (FNMC) mortgage backed securities (20 percent risk-weight category), $1000 million in home mortgages (50 percent risk-weight category), and $1000 million in commercial loans (100 percent risk-weight category). This bank has $96 million in Tier 1 capital (e.g., common and preferred equity) and $48 million in Tier 2 capital (e.g., ALL, subordinated debt, etc). What is this bank's ratio of TOTAL capital to risk-weighted assets?

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Category:- Basic Finance
Reference No.:- M92780021

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