Question: (a)Examine the exhibit below and explain using the return on equity equation the information presented in the graphs. Detail any simplifying assumptions that assist in

(a)Examine the exhibit below and explain using the return on equity equation the information presented in the graphs. Detail any simplifying assumptions that assist in your explanation. The COVID-19 pandemic's impact on banking profitability and capital has been mild compared with that of the 2007-10 financial crisis. Comparison of ROE and Tier-1 ratios, global banks, 2007-10 and 2019-22 (estimated), % Return on equity Tier-1 ratio Financial crisis 16 16 2007 2010 14 COVID-19 pandemic 12 10 12 2019 2022E CO 10 6 8 Estimated. Source: S&P Global; Panorama by Mckinsey (b) What is a maturity bucket in the repricing model? Why is the length of time selected for repricing assets and liabilities important when using the repricing model? How does this impact runoff

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