Bank A has an imaginary portfolio of USD 1000 Million distributed towards following four entities: Bank A is stipulated to maintain a capital adequacy ratio of 11% on its risk weighted assets. It is being stipulated that the ratings for all the four entities is expected to be downgraded by 1 notch each. Estimate the amount of new capital required for Bank A?

Question

Bank A has an imaginary portfolio of USD 1000 Million distributed towards following four entities:  Bank A is stipulated to maintain a capital adequacy ratio of 11% on its risk weighted assets. It is being stipulated that the ratings for all the four entities is expected to be downgraded by 1 notch each. Estimate the amount of new capital required for Bank A?

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The Answer of Bank A has an imaginary portfolio of USD 1000 Million distributed towards following four entities:  Bank A is stipulated to maintain a capital adequacy ratio of 11% on its risk weighted assets. It is being stipulated that the ratings for all the four entities is expected to be downgraded by 1 notch each. Estimate the amount of new capital required for Bank A?

Bank a Has an Imaginary Portfolio of USD 1000 Million