20-140 What is the bank's risk-adjusted assets as defined by the Basel standards for its on- balance-sheet assets only?

Question

Quizplus · Accepted Answer

The bank's risk-adjusted assets are calculated by multiplying the bank's on-balance-sheet assets by the appropriate risk weight. The risk weights for different types of assets are determined by the Basel standards. In this case, the bank's on-balance-sheet assets are $400 million. The risk weight for on-balance-sheet assets is 100%. Therefore, the bank's risk-adjusted assets are $400 million * 100% = $400 million.

20-140 What Is the Bank's Risk-Adjusted Assets as Defined by the Basel