Capital Calculation
To calculate required capital, a bank would multiply the assets in each risk category by the category’s risk weight and then multiply the result by 8%
Thus a $100 commercial loan would be multiplied by 100% and then by 8%, resulting in a capital requirement of $8.
Thus a $100 commercial loan would be multiplied by 100% and then by 8%, resulting in a capital requirement of $8.
No comments:
Post a Comment