Explanation:

The minimum Tier 1 capital increases from 4% in Basel II to 6%, applicable in 2015, over RWAs. This 6% is composed of 4.5% of CET1, plus an extra 1.5% of Additional Tier 1 (AT1).

So in this case, Tier I capital must be at least $24 million:

$`$ 0.06\% \times \ $400` \text{ million} = \`$ 24` \text{ million} $$

Q.4292 The estimated risk-weighted assets of a bank stand at `$400` million. In the context of Basel III, what is the bank's minimum Tier 1 capital?

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UAnonymous

Last updated: July 5, 2026 at 07:07

$18 million

$12 million

$16 million

$24 million

Financial Risk Manager Part 2

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Q.4292 The estimated risk-weighted assets of a bank stand at `$400` million. In the context of Basel III, what is the bank's minimum Tier 1 capital?

Financial Risk Manager Part 2

Comments (0)

Q.4292 The estimated risk-weighted assets of a bank stand at $400 million. In the context of Basel III, what is the bank's minimum Tier 1 capital?

Q.4292 The estimated risk-weighted assets of a bank stand at `$400` million. In the context of Basel III, what is the bank's minimum Tier 1 capital?