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Financial Risk Manager Part 2

Financial Risk Manager Part 2

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Assume a bank determines credit risk-weighted assets (credit RWA) of 10million,amarketriskcharge(MRC)of10 million, a market risk charge (MRC) of 10million,amarketriskcharge(MRC)of300,000 and an operational risk charge (ORC) of 500,000.TomeetBaselIIIrequirements,thebankhasdetermineditholds500,000. To meet Basel III requirements, the bank has determined it holds 500,000.TomeetBaselIIIrequirements,thebankhasdetermineditholds2.0 million in eligible total (Tier 1 plus Tier 2) regulatory capital. What is the bank's total capital ratio?

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