Question: (a)Your Bank has the following balance sheet (in millions of dollars) and has no off-balance-sheet or securitisation activities. Assets Liabilities and equity Cash (0%) $30

(a)Your Bank has the following balance sheet (in millions of dollars) and has no off-balance-sheet or securitisation activities.

Assets

Liabilities and equity

Cash (0%)

$30

Deposits

$1200

Australian Treasury Bonds (0%)

50

Subordinated debt

50

Insured standard residential mortgages with LVR of 84% (50%)

700

Common Equity

50

Other loans rated BB+ (100%)

530

Retained earnings

10

Total assets

$1310

Total liabilities and equity

$1310

(i)What are the values of the regulated primary capital measures?

(ii)What is the value of credit risk weighted assets?

(iii)Assuming that operational risk and market risk are zero, calculate any two of the capital adequacy ratios?

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