1-. A bank has estimated that its net income for the year is $2.0 million with 500,000 outstanding shares. It has estimated that its Common Equity Tier 1 (CET1) ratio is 6.25%. Its normal dividend payout ratio is 60%. Under the capital conservation buffer requirements of 2019, is it able to pay 50% of its net income as dividends? If not, what is the maximum dividends it can pay per shares?

2-. The net income for a bank is $1.5 million with 300,000 outstanding shares. The Common Equity Tier 1 (CET1) ratio is estimated to be 6.75%. Its normal dividend payout ratio is 85%. Under the capital conservation buffer requirements of 2019, is it able to pay 80% of its net income as dividends? If not, what is the maximum dividends it can pay per shares?

3- Explain countercyclical buffer in Basel 3. 4-. Explain Prompt Corrective Action (PCA) established under the FDICIA Act of 1992. 5- How the risk weights of Basel 3 different from Basel II?