New Value of Core Equity Tier Assignment | Homework For You
May 30th, 2020
Onshore Bank has $29 million in assets, with risk-adjusted assets of $19 million. Core Equity Tier 1 (CET) capital is $900,000, additional Tier I capital is $250,000, and Tier Il capital is $418,000. 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 $109,000 of common stock with cash.
6. 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 deposits 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 At credit rating
e. The bank issues $1.9 million in nonqualifying perpetual preferred stock and purchases general obligation municipal bonds 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 ATMs Complete this question by entering your answers in the tabs below.
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The bank receives $509,000 in deposits and invests them in T-bills. (Re nd your answers to decimal places (.9. 32.161) CET1 ratio Tiarrato Total capital ratio seguired Required Get Finance homework help today