4/16/25, 1:01 AM Gurleen Bajwa - AFF811/FIN801 011 - Financial Risk Management - W2025 - Toronto Metropolitan University
Review Quiz 4 - Results X
Attempt 1 of 1
Written Feb 6, 2025 2:45 PM - Feb 6, 2025 3:10 PM
Attempt Score 56.25 %
Overall Grade (Highest Attempt) 56.25 %
Question 1 points
A large bank has been declared a G-SIB and assigned a 1.5% CET1 surcharge.
Their national regulator has set the CET1 countercyclical buffer to 0.5%.
What is the minimum requirement for this bank's Tier 1 capital as a
percentage of RWA?
Note: Your answer in must be expressed in percentage terms and accurate to
within 0.1%.
Answer:
12.5 % (10.50)
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Feedback
The appropriate calculation is:
Minimum capital requirement = 6.0% Base amount + 2.5% Capital
conservation Buffer + Countercyclical Buffer + G-SIB CET1 surcharge
https://courses.torontomu.ca/d2l/Ims/quizzing/user/quiz_submissions_attempt.d21?isprv=&qi=441867 &ai=10352930&isInPopup=0&cfql=0&fromQB=0&... 1/7
, 4/16/25, 1:01 AM Gurleen Bajwa - AFF811/FIN801 011 - Financial Risk Management - W2025 - Toronto Metropolitan University
Question 2 points
A bank has Tier 1 capital of $48.2 million, Tier 2 capital of $33.2 million, and a
total risk exposure of $825 million. What is the leverage ratio for this bank?
Note: Your answer in must be expressed in percentage terms and accurate to
within 0.1%.
Answer:
58 v
w Hide question 2 feedback
Feedback
The appropriate calculation is:
Leverage ratio = Tier 1 capital / Total risk exposure
Question 3 points
A bank has the following non-cash assets:
« AA-rated government bonds: $20 million
« Residential mortgages: $84 million
o Commercial loans: $94 million
and the following liabilities and equity:
ST deposits: $58 million
LT deposits: $23 million
Wholesale deposits: $92 million
LT debt + Equity: $81 million
What is the NSFR for this bank?
Note: Your answer must be accurate to within 0.01.
https://courses.torontomu.ca/d2l/Ims/quizzing/user/quiz_submissions_attempt.d21?isprv=&qi=441867&ai=10352930&isInPopup=0&cfql=0&fromQB=0&... 207
Review Quiz 4 - Results X
Attempt 1 of 1
Written Feb 6, 2025 2:45 PM - Feb 6, 2025 3:10 PM
Attempt Score 56.25 %
Overall Grade (Highest Attempt) 56.25 %
Question 1 points
A large bank has been declared a G-SIB and assigned a 1.5% CET1 surcharge.
Their national regulator has set the CET1 countercyclical buffer to 0.5%.
What is the minimum requirement for this bank's Tier 1 capital as a
percentage of RWA?
Note: Your answer in must be expressed in percentage terms and accurate to
within 0.1%.
Answer:
12.5 % (10.50)
w Hide question 1 feedback
Feedback
The appropriate calculation is:
Minimum capital requirement = 6.0% Base amount + 2.5% Capital
conservation Buffer + Countercyclical Buffer + G-SIB CET1 surcharge
https://courses.torontomu.ca/d2l/Ims/quizzing/user/quiz_submissions_attempt.d21?isprv=&qi=441867 &ai=10352930&isInPopup=0&cfql=0&fromQB=0&... 1/7
, 4/16/25, 1:01 AM Gurleen Bajwa - AFF811/FIN801 011 - Financial Risk Management - W2025 - Toronto Metropolitan University
Question 2 points
A bank has Tier 1 capital of $48.2 million, Tier 2 capital of $33.2 million, and a
total risk exposure of $825 million. What is the leverage ratio for this bank?
Note: Your answer in must be expressed in percentage terms and accurate to
within 0.1%.
Answer:
58 v
w Hide question 2 feedback
Feedback
The appropriate calculation is:
Leverage ratio = Tier 1 capital / Total risk exposure
Question 3 points
A bank has the following non-cash assets:
« AA-rated government bonds: $20 million
« Residential mortgages: $84 million
o Commercial loans: $94 million
and the following liabilities and equity:
ST deposits: $58 million
LT deposits: $23 million
Wholesale deposits: $92 million
LT debt + Equity: $81 million
What is the NSFR for this bank?
Note: Your answer must be accurate to within 0.01.
https://courses.torontomu.ca/d2l/Ims/quizzing/user/quiz_submissions_attempt.d21?isprv=&qi=441867&ai=10352930&isInPopup=0&cfql=0&fromQB=0&... 207
