Notes and Coins 69
Balances with Bank of Zambia 30
Balance with Banks and other financial institutions in Zambia 0
Balance with Banks and other financial institutions abroad 24
Investments in securities 22
Loans and advances 57
Fixed Asset 78
Other Assets 17
Total Assets 297
Balances due to Banks and other financial institutions in Zambia 88
Balances due to Banks and other financial institutions abroad 14
Other liabilities 58
Bills of Exchange 0
Other borrowed funds (including Subordinated Debt) 71
Shareholders’ equity 35
Total Liabilities 316
Off Balance Sheet items
Assets pledged as collateral other than a house
Allowance for losses on acceptances and off balance sheet items in other liabilities
Calculate for Banks A: Total Primary Capital, Total Secondary Capital, Eligible Total Capital, current Minimum Total Capital Requirements, and Capital Excess or Deficiency assuming:
a).a foreign majority owned bank b). a Zambian majority owned bank.
Total Primary Capital means, with respect to any Subsidiary, (a) equity plus (b) loan loss reserves minus (c) intangible assets (as set forth on Schedule RC of the call report for such Subsidiary) including mortgage servicing rights.
Total Primary Capital=35+58-0=93
Secondary capital of the bank: term subordinated borrowings and perpetual debt not included in primary capital
Total Secondary Capital=71
Regulatory capital consists of three categories, each governed by a single set of criteria that instruments are required to meet before inclusion in the relevant category.
(1)Common Equity Tier 1 (going-concern capital)
(2)Additional Tier 1 (going-concern capital)
(3)Tier 2 Capital (gone-concern capital)
Eligible Total Capital=93+71=164
The capital ratio is calculated using the definition of regulatory
capital and risk-weighted assets. The total capital ratio must be no lower than 8%. Tier 2
capital is limited to 100% of Tier 1 capital.