Under the terms of the Basel I Agreement, what risk weights apply to the following on-balancesheet and off-balance-sheet items?

Question

Accepted Answer

Residential real estate loans	Credi t card loans
Cash	Standby letters of credit for municipal
Commercial loans	bonds
U.S. Treasury securities	Long-term unused commitments to
Deposits held at other banks	make corporate loans
GNMA mortgage-backed	Currency derivative contracts
securities	Interest-rate derivative contracts
Standby credit letters for	Short-term (under one year) loan
commercial paper	commitments
Federal agency securities	Bank real property
Munici pal general obligation bonds	Bankers’ acceptances
Investments in subsidiaries	Municipal revenue bonds
FNMA or FHLMC issued	Reserves on deposit at the Federal
or guaranteed securi ties	Reserve banks

The items which would appear in the 0%, 20%, 50% and 100% risk weight categories are the following:

0%	20%	50%	100%
Cash	Deposits held at other banks	Residential real estate loans	Commercial loans
U.S. Treasury securities	Federal agency securities	Long term commitments to make corporate loans	Standby credit letters for commercial paper
GNMA mortgage - backed securities	Municipal general obligation bonds	Currency derivative contracts	Investments in subsidiaries
Short term loan commitments	FNMA or FHLMC issued or guaranteed securities	Interest-rate derivative contracts	Credit card loans
Reserves on deposit at the Federal Reserve banks	Standby letters of credit for municipal bonds	Municipal revenue bonds	Bank real estate
			Bankers’ acceptances

Question 15.P.3: Under the terms of the Basel I Agreement, what risk weights ...