Calculate bank risk weight assets before and after agreement

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Reference no: EM13262840

Consider a bank with the following balance sheet (in million dollars):
Asset
Required Reserves $10, Excess Reserves $5, T bills $55, Commercial loans $60
Liability
Checkable deposits $100 Bank Capital $30
The bank makes a loan commitment for $6 million to a commercial customer. Calculate the banks capital ratio before and after the agreement. Calculate the banks risk weighted assets before and after the agreement. (please include explanation) thank you

Reference no: EM13262840

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