What is the minimum level of capital according to basel ii

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An internationally active bank has a $500 million portfolio of investments and bank credits. $100 million are claims on sovereigns with a AAA credit rating, $100 million are claims on corporates with a AAA credit rating, $100 million are claims on sovereigns with a single A credit rating, $100 million are claims on corporates with a single A credit rating, and $100 million are claim on corporates with a single B credit rating. What is the minimum level of capital according to Basel II the bank must maintain using the standardized approach for valuing credit risk? Be sure to show both the value of the risk-weighted assets and the amount of bank capital.

Reference no: EM13568690

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