What does the bank balance sheet look like

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Oldhat Financial started its first day of operations with $9 million in capital. $130 million in checkable deposits are received. The bank issues a $25 million commercial loan and another $50 million in mortgages, with the following terms:

? Mortgages: 200 standard 30-year, fixed-rate with a nominal annual rate of 5.25% each for $250,000.

? Commercial loan: Three-year loan, simple interest paid monthly at 0.75% per month. If required reserves are 8%,

what does the bank balance sheet look like? Ignore any loan loss reserves. How well-capitalized is the bank?

Reference no: EM131128275

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