risk-weighted asset calculation

Part A: The table shows select balance sheet and off-balance-sheet items for Bangor Bank. Risk-based Capital - Bangor Bank Assets, fm Risk Weight | Risk Weighted Assets Cash and reserves 95.231 Government securities 2,123,456 Mortgage loans 104.401 Commercial loans 3,951,456 Total assets Off balance sheet contingencies Unused loan commitment Commercial letter of credit Underwriting facility 200,500 Standby letter of credit 450,789 Total contingencies Total assets and contingencies Capital requirements Tier 1 @ 4% Total capital @ 8% Required: [i] Assign the appropriate risk classes and calculate the amount of risk weighted assets for each balance sheet item and for the bank as a whole. [6 marks] [ii] Calculate credit-equivalent amounts of risk-weighted assets for the off-balance-sheet items. [6 marks] [iii] Based on the total risk weighted assets, what are the minimum amounts of capital the bank must hold as (i) Tier 1 capital, and (ii) Total capital. [6 marks][iv] What are the differences between the risk-adjusted capital the bank must hold and how much it would hold if capital requirements were 4% and 8% of tom] assets? [T marks]