TABLE 20 Risk-Weighted Assets  ($ millions, except as noted) As at October 31 2002 2001 Credit Risk Risk- Risk- risk weighting weighted weighted Balance equivalent % balance balance Balance sheet items Cash resources 19,305 3,689 0—20 3,689 3,184 Securities 43,715 17,178 0—100 6,771 7,705 Mortgages 51,912 15,300 0—100 15,300 14,838 Other loans and acceptances 97,684 71,268 0—100 71,268 72,798 Other assets 40,248 7,534 0—100 7,534 8,272 Total balance sheet items 252,864 114,969 104,562 106,797 Off-balance sheet items Guarantees and standby letters of credit 11,902 10,292 0—100 8,251 6,841 Securities lending 580 67 0—100 38 319 Documentary and commercial letters of credit 642 128 0—100 84 63 Commitments to extend credit: Original maturity of one year and under 72,723 — — — — Original maturity of over one year 21,765 10,883 0—100 9,787 10,155 Derivative financial instruments 1,919,431 19,901 0—50 5,994 5,708 Total off-balance sheet items 2,027,043 41,271 24,154 23,086 Total risk-weighted assets — credit risk 128,716 129,883 Total risk-weighted assets — market risk  2,362 5,885 Total risk-weighted assets 131,078 135,768 Total risk-weighted assets — U.S. basis 132,730 139,060 TABLE 21 Capital Adequacy  ($ millions, except as noted) As at October 31 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 Tier 1 — Common shareholdersGLYPH<213> equity 10,377 9,632 10,260 9,313 8,650 7,629 6,729 6,174 5,678 4,834 Non-cumulative preferred shares 1,517 1,050 1,681 1,668 1,958 1,274 857 858 860 852 Innovative Tier 1 capital 1,150 1,150 350 — — — — — — — Non-controlling interest in subsidiaries 32 32 20 27 40 80 101 121 144 66 Goodwill and excess intangible assets (a) (1,547) (798) (447) (430) (494) (521) (557) (411) (450) (159) Tier 1 Capital 11,529 11,066 11,864 10,578 10,154 8,462 7,130 6,742 6,232 5,593 Tier 2 — Subsidiary preferred shares (b) 377 397 — — — — — — — — Subordinated debt 3,171 4,133 4,550 4,522 4,670 3,582 3,179 2,268 1,999 2,248 General allowance for credit losses (c) 1,147 1,180 1,007 970 873 775 — — — — Tier 2 Capital 4,695 5,710 5,557 5,492 5,543 4,357 3,179 2,268 1,999 2,248 Less: First loss protection 192 325 511 315 323 113 na na na na Investment in non-consolidated  subsidiaries/substantial investments — — 821 1,010 858 697 625 — — — Total capital 16,032 16,451 16,089 14,745 14,516 12,009 9,684 9,010 8,231 7,841 Risk-weighted assets 131,078 135,768 134,360 136,964 139,782 124,348 106,267 96,075 86,589 76,074 Risk-weighted capital ratios (%) Tier 1 8.80 8.15 8.83 7.72 7.26 6.80 6.71 7.02 7.20 7.35 Total 12.23 12.12 11.97 10.77 10.38 9.66 9.11 9.38 9.51 10.31 U.S. basis Tier 1 8.32 7.87 8.47 7.42 6.95 6.35 6.26 6.82 6.91 7.13 U.S. basis total 11.60 11.69 12.50 11.34 10.86 9.92 9.81 9.97 10.07 11.14 Assets-to-capital multiple 15.8 14.2 14.8 16.3 16.0 18.0 19.0 17.6 17.7 15.6 Equity-to-assets ratio (%) 5.3 5.1 5.4 4.9 5.0 4.4 4.6 4.7 4.8 4.9 (a) In addition to goodwill, intangible assets in excess of gross Tier 1 capital are deducted from Tier 1 capital as required by OSFI guidelines. (b) Reflects the qualification of existing preferred shares of a subsidiary as Tier 2 capital. (c) General allowance included with the approval of OSFI beginning in 1997. OSFI approved the inclusion of the lesser of the balance of our general allowance for credit losses or a percentage of risk- weighted assets (0.875% in 2002). na — not applicable BMO FINANCIAL GROUP ANNUAL REPORT 2002 63