Explore BrainMass

Explore BrainMass

    Bank Ratios

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    A large Bank Holding Company has Tier-1 capital of $40 billion and Tier-2 capital of $20 billion and risk weighted assets of $550 billion. Calculate the risk based capital ratios and determine whether they meet the required standards.

    © BrainMass Inc. brainmass.com December 24, 2021, 7:32 pm ad1c9bdddf

    Solution Preview

    Tier 1 capital = $40 billion
    Tier 2 capital = $20 billion
    Risk weighted assets = $550 billion

    Total capital = Tier 1 capital + Tier 2 capital = ...

    Solution Summary

    This solution calculates the risk based capital ratios for a bank based on Tier-1, Tier-2 capital and risk weighted assets