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Explanation:
Basel III changed the minimum capital requirements such that the Core Tier 1 capital must be at least 4.5% of the risk-weighted assets (RWA). So, in this case, the Core Tier 1 must be at least:
4.5\% \times \200` \text{ million} = \`9` \text{ million} $$
Q.4291 The estimated risk-weighted assets of a bank is $200 million. In the context of Basel III, the Core Tier 1 (Tier 1 Equity Capital) of the bank is at least:
A
$10 million
B
$4.5 million
C
$9 million
D
$12 million
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