A

问题如下：

Thrift Bank carries risk-weighted assets (RWA) of $40.0 billion. Inregard to its eligible regulatory capital, the bank holds:

• $2.8 billion of Common Equity Tier 1 Capital (“Core Tier 1”)

• $0.2 billion of Additional Tier 1 Capital

• $1.4 billion of Tier 2 Capital (“Gone concern”)

Does Thrift Bank meet the Basel III capitalrequirements?

选项：

A.

No, because Tier 1 Capital is not at least 8.5%

B.

No, because Total Capital is not at least 10.5%

C.

Yes, because Tier 1 is at least 4.0%

D.

Yes, because Tier 2 is at least 2.5%

解释：

No, because Tier 1 Capital is not at least8.5%

Basel III requires Core Tier 1 (CommonEquity) of 7.0%, Tier 1 of 8.5%, and Total Capital of 10.5%:

Core Tier 1 (Common Equity) ratio of at least7.0% = 4.5% + 2.5% Conservation Buffer. Thrift Bank holds exactly sufficientCommon Equity: 2.8/40.0 =7.0%.

Tier 1 (Common Equity + Additional Tier 1)ratio of at least 8.5% = 6.0% Tier 1 + 2.5% Conservation buffer. Thrift Bankonly holds Tier 1:3.0/40.0 = 7.5%

Total Capital ratio of 10.5% = 8.0% total capital +2.5% Conversation Buffer. Thrift Bank holds Total Capital:4.4/40.0 = 11.0%