A Bank has the following balance sheet (in millions),with the risk weights in parentheses.
In addition,the bank has $30 million in commercial direct-credit substitute standby letters of credit to a public corporation and $30 million in 10-year FX forward contracts that are in the money by $2 million.
A) What are the risk-adjusted on-balance-sheet assets of the bank as defined under the Basel III?
B) What are the common equity Tier I (CET1)risk-based capital ratio,Tier I risk-based capital ratio,and the total risk-based capital ratio?
C) Disregarding the capital conservation buffer,does the bank have sufficient capital to meet the Basel requirements?
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