In addition, the bank has an impairment stock of GHS 60m on its balance sheet.
The bank’s aggregate FX NOP at the end of the month stands at GHS 20m and the bank does not have a trading book and engages only in the retail business
The audited gross incomes of ABC for the past four years are as follows:
2015 = 150m
2016 = 175m
2017 = 250m
2018 = 325 m
Calculate the risk-weighted assets for ABC assuming Ghana’s capital adequacy regime for ABC (refer to attached for risk weights). (8 marks)
What is the minimum Capital ABC should hold if the regulatory limits are as follows:
Tier 1-11% (2 marks)
CAR-13% (2 marks)
Enumerate the problems associated with Basel I capital regime and how moving to Basel II solve these. (2 marks)
