Task: Consider a bank with the following balance sheet: (See Excel table given below)
Assets |
Libilities |
Required |
Checkable |
Reserves $8 million |
Deposits $100 million |
Excess |
Bank Capitol $6 million |
Reserves $3 million |
|
T-bills $45 million |
|
Commercial |
|
Loans $50 million |
|
The bank commits to a loan agreement for $10 million to a commercial customer. Calculate the bank's Capitol Ratio before and after the agreement. Calculate the banks Risk-Weighted assets before and after the agreement.