Financial Risk Manager Part 2
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Q-73. Thrift Bank carries risk-weighted assets (RWA) of $40.0 billion. In regard to its eligible regulatory capital, the bank holds:
$2.8 billion of Common Equity Tier 1 Capital ("Core Tier 1")
$0.2 billion of Additional Tier 1 Capital
$1.4 billion of Tier 2 Capital ("Gone concern")
Does Thrift Bank meet the Basel III capital requirements?
A
No, because Tier 1 Capital is not at least 8.5%
B
No, because Total Capital is not at least 10.5%
C
Yes, because Tier 1 is at least 4.0%
D
Yes, because Tier 2 is at least 2.5%