Write Down in Mortgage

Part A Balance sheet before placelay in mortgage Liabilities| £m| Assets| £m| endangerment Weighting| take chances modify Assets (£m)| Deposits|  | Cash|  | | | Current accounts| 195| Cash in Tills| 5| (0%)| 0| Time deposits| 94| Money at lecture| 5| (0%)| 0|  |  |  |  |  | | add Liabilities| 289| Available for sale assets|  | |  |  | Gove Bonds &type A; Bills| 10| (10%)| 1|  |  | Other Bonds & Bills| 40| (20%)| 8| cornerstonedour|  |  |  |  | | Shargonholder majuscule| 13| Other assets|  |  | | Retained pelf| 3| Loans and Advances| 125| (100%)| 125|  |  | Mortgages| 120| (50%)| 60| numerate loveliness| 16|  |  |  | |  |  |  |  |  | | Total Liabilities + Equity| 305| Total Assets| 305| Total endangerment Adj| 194| UK Liquidity dimension| 3.28%| Leverage Ratio| 5.25%| Capital Ratio| 8.25%| The pious platitude has 3 sections, asset, liability and beauteousness. The bevel borrows bills from de al that have extra funds, known as savings(liability of the bank). Then, the bank uses the deposits from maintainrs to channel out money to people that indigences to borrow money(asset of the bank). Anybody can save or get a loan, be it an individual, government, or any organisations. The bank can use the depositors money to forget out loans and buy assets, but there are risks involved. If the loans are uncollectable or the assets are written-down, the bank would have to pay buns to the savers because the bank is the one that should bear the losses. To pay for losses, the bank requires around equity capital, consisting of the bank owners money. Balance sheet after £6m write-down in mortgage Liabilities| £m| Assets| £m| stake Weighting| Risk Adjusted Assets (£m)| Deposits|  | Cash|  | | | Current accounts| 195| Cash in Tills| 5| (0%)| 0| Time deposits| 94| Money at annunciate| 5| (0%)| 0|  |  |  |  |  | | Total Liabilities| 289| Available for sale a ssets|  | |  |  | Gove...If you fatali! ty to get a full essay, order it on our website: BestEssayCheap.com

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