Calculate the total capital, Financial Accounting

The current balance sheet of CBKH shows $800 million of corporate loans ($500 million of which being rated AA- and the remaining rated BBB+), $200 million of bonds issued by an OECD country with a credit rating of BBB, $400 million of residential mortgage, and $350 million of personal loans. In addition, HCU has the following transactions with an AA-rated corporation:

(a) a 7-year interest rate swap with a principal of $100 million worth $3 million;

(b) a 9-month foreign exchange forward contract with a principal of $150 million worth -$9 million; and

(c) a 2-year long option on gold with a principal of $50 million worth $7 million (here the principal amount is roughly the exercise price amount). What is the total capital requirement under Basel I if there is no netting? What difference does it make if the netting amendment applies? What is the total capital required under Basel II when the standard approach is used?

Posted Date: 3/25/2013 5:21:40 AM | Location : United States

Related Discussions:- Calculate the total capital, Assignment Help, Ask Question on Calculate the total capital, Get Answer, Expert's Help, Calculate the total capital Discussions

Write discussion on Calculate the total capital
Your posts are moderated
Related Questions
Q. What is Stock Split? Stock Split - Increase in number of shares of a company's COMMON STOCK outstanding that result from the issuance of additional shares proportionally to

Q. Assembly of Financial Statements? Assembly of Financial Statements -Providing of various accounting or data-processingservices by an accountant, output of which is in the fo

what are five modern financialaccounting techniques

Types of temporary differences There are two main types of temporary differences; 1) Taxable temporary difference : If the carrying amount is more than the tax base then

Question: Vinak Ltd., which produces three products provides you the following data for 2008-2009.

Q. What is fair value in stock market? Fair value - Amount at which an asset (or liability) could be bought (or incurred) or sold (or settled) in a current transaction between

Conny Duffy started working for Dexter Company on Thursday and 9 hours on Frida. Her annual salary is $80,000 and she is exempt white-collar employee. Determine her gross pay for h

Red Herring -‘Pre-release' PROSPECTUS offering. An announcement of a future issuance of SECURITIES, given restricted circulation during waiting period of 20 days or other specified

In Section we had established an association among the effective and nominal rate of interest where compounding arise n times a year that is as given: r = (1 +  k/m ) m - 1