What would be considered better capitalized, Accounting Basics

What would be considered better capitalized

Question: On the basis of the data from the table below, which bank would be considered better capitalized according to risk-weighted capital requirement? Bank A Bank B Assets Liabilities & Equity Assets Liabilities & Equity Reserves 50 Deposits 450 Reserves 50 Deposits 450 Government Securities 100 Equity 50 Government Securities 75 Equity 50 Real Estate Loans 200 Real Estate Loans 175 Business Loans 150 Business Loans 200

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Accounting Basics: What would be considered better capitalized

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Accounting Basics: What would be considered better capitalized

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