Question 12 [8 marks] MNO Bank (a large systemically important Australian bank operating under Internal Ratings Based model) has disclosed the following information: Issued Shares Retained Earnings Subordinated Debt Additional Tier 1 Capital $ 135,000 25,000 35,000 20,000 Credit Risk Weighted Assets (RWAC) Market Risk Charge (MRC) Operational Risk Charge (ORC) 550,000 45,000 35,000 You are required to: 1. Calculate the Total Capital Ratio of MNO Bank. [3 marks] 2. Determine whether MNO Bank has a capital surplus or capital deficit (versus the total regulatory capital requirements) and state the amount of that surplus or deficit. [3 marks] 3. Determine whether MNO Bank has sufficient Common Equity Tier 1 Capital and calculate the amount of the surplus or deficit (taking into account all of the CET1 requirements applicable to MNO Bank). [2 marks]