Balance Sheet of CULC Bank Excel

This exercise considers the minimum capital requirements under the 1988 BIS Accord (or Basel I).

Consider the following on the asset side of the balance sheet for CULC Bank:

Asset Amount (GBP mn)

Cash 50.5

UK Gilts 100.3

US Treasuries 30.2

UK Residential Mortgage Loans 350.2

Loan to ANZ Bank (Australia) 86.1

Swap Agreements, Net, to French Banks 50.9

Corporate Loans to UK SME’s 500.9

Corporate Bonds (publicly traded) 100.5

Loans to Major German Corporations 600.8

Calculate the Risk Weighted Amount assuming no off-balance sheet items.

What is the minimum amount of capital CULC Bank is required to keep under Basel I?

What is the minimum amount of Tier 1 capital CULC Bank is required to keep under Basel I?