What are the bank’s total risk-weighted assets? National Commercial Bank reports the following items on itsbalance sheet: cash RO 200 million; government securities RO 150million; customer deposits RO 10o million; residential real-estateloans RO 300 million, and private loans RO 350 million. Its off-balance-sheet items include: standby credit letters RO 30 million andlong-term credit commitments to corporations, RO 160 million.1) What are the bank's total risk-weighted assets?00sonRISK WEICHTSon balance sheetCash0%Government Securities0%Deposits at domestic banks20%Residential Real Estate Loanss0%Loans to private companiesoff balance sheet100%Long term credit commitments to corporationsStandby Letters of CreditConversion factor for Standby Letters of Credit100%20%Conversion factor for Long term credit commitments to corporations

Risk weighted Assets- Meaning To ascertain the minimum capital that must be held by banks and…

Answered: What are the bank’s total risk-weighted…

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Finance

What are the bank’s total risk-weighted assets

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter9: The Cost Of Capital

Section: Chapter Questions

Problem 16P

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Njenge Bank has the following balance sheet (in millions) with the risk weights in parentheses: Assets Liabilities and Equity Cash (0%) K20 Deposits K175 OECD Interbank deposits (20%) K25 Subordinated debt (2.5 years) K3 Mortgage loans (50%) K70 Cumulative preferred stock K5 Consumer loans (100%) K70 Equity K2 Total Assets K185 Total Liabilities & Equity K185 In addition, the bank has K30 million in performance-related standby letters of credit (SLCs), and K300 million in six-year interest rate swaps.…
Njenge Bank has the following balance sheet (in millions) with the risk weights in parentheses. Assets Liabilities and Equity Cash (0%) K20 Deposits K175 OECD Interbank deposits (20%) K25 Subordinated debt (2.5 years) K3 Mortgage loans (50%) K70 Cumulative preferred stock K5 Consumer loans (100%) K70 Equity K2 Total Assets K185 Total Liabilities & Equity K185 In addition, the bank has K30 million in performance-related standby letters of credit (SLCs), and K300 million in six-year interest rate swaps. Credit conversion factors follow: Performance-related standby LCs 50%…
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