0.8: Second National Bank has the following balance sheet (in millions and risk weights: (Marks: 8) Cash (0%) Mortgage loans (50%) Consumer loans (100%) Loan Loss Reserves $ 10 $40 $ 60 S7 Deposits S60 Money market borrowing 38 Subordinate debt ( 5 years) 5 Equity 2 Qualifying preferred stock S a) What is the risk adjusted on balance sheet assets of the bank as defined under the Basel Il or 1112 b) Does the bank have enough capital to meet the Basel requirements? If not what minimum Tier I or total capital does it need to meet the requirement? c) If mortgage homeowners pay back $1 million and the bank use the proceeds to build new ATM. how this transaction affects the value of Tier I and total capital ratio? d) If bank issues S1 million in non-qualifying perpetual stock and lends to other Fl with AAA+ credit rating, how this transaction will affect the Capital and Capital ratios? 0.8: Second National Bank has the following balance sheet (in millions and risk weights: (Marks: 8) Cash (0%) Mortgage loans (50%) Consumer loans (100%) Loan Loss Reserves $ 10 $40 $ 60 S7 Deposits S60 Money market borrowing 38 Subordinate debt ( 5 years) 5 Equity 2 Qualifying preferred stock S a) What is the risk adjusted on balance sheet assets of the bank as defined under the Basel Il or 1112 b) Does the bank have enough capital to meet the Basel requirements? If not what minimum Tier I or total capital does it need to meet the requirement? c) If mortgage homeowners pay back $1 million and the bank use the proceeds to build new ATM. how this transaction affects the value of Tier I and total capital ratio? d) If bank issues S1 million in non-qualifying perpetual stock and lends to other Fl with AAA+ credit rating, how this transaction will affect the Capital and Capital ratios