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
You were recently hired by E&T Boats, Inc. to assist the company with its financial planning and to evaluate the company's performance.  E&T Boats, Inc. builds and sells boats to o

agency conflicts and solutions in shareholders vs auditors

The assignment requires a significant part of the work to be done in a spreadsheet. I have not nominated any particular vendoar or any particular version. The choice is up to you,

On January 7, 2016, Captec Company purchased $4,175 of supplies on account . In Captec Company’s chart of accounts , the Supplies account is No. 15, and the Accounts Payable accoun

Non-for-Profit Organization/Tax-Exempt Organization - An incorporated organization that exists for charitable or educational purposes, and from that its shareholders or trustees do

AskA of Surat consign goods to B of Jaipur to be sold at or above invoice price. B is entiled to get a commission of 8% on sales at invoice price plus 25% of any surplus price real

Realisation of assets 1. Divisible property : The ownership of the company's property does not vest in the liquidator (unless the court makes a vesting order: s.240); but

The Soft-Flow Ink Company's income statement for the preceding year is presented below. Except as noted, the costs revenue relationship for the coming year is expected to follow t

Q. What is Inheritance in Gross income? Inheritance - As distinguished from a BEQUEST or devise, an inheritance is property attained through laws of descent and distribution fr

Q. Investors advantage from financial intermediation? Investors advantage substantially from financial intermediation because: (a) By investing in a market or bank investors