Bank Valuation and Its Connections with the Subprime Mortgage Crisis and Basel II Capital Accord

Table 1

Risk categories, risk-weights and representative items.

Risk category	Risk-weight	Banking items
1	0%	Cash, bonds, treasuries, reserves
2	20%	Shares
3	50%	Home loans
4	100%	Intangible assets
5	100%	Loans to private agents