1. The following is a balance sheet of the Gamma bank (in millions of dollars). Assets Required reserves (8) Excess reserves (17) Treasury bills (30) Commercial Loans (37) Mortgage (8) Liabilities Checkable Deposits (80) CB Loans (13) Common Stock (5) Bad debt provision (2) (a) What is the non-risk-based capital requirement of Gamma Bank? Does it comply with Basel 3 standard? (5 points) (b) What is the Tier 1 capital ratio? (5 points) (c) The bank makes a loan commitment of 15 million to a commercial customer and dis- covers 1 million bad loans that should write off the balance sheet. Calculate the bank's Tier 1 capital ratio before and after the agreement. (10 points) Note: Show all the details of balance sheet analysis! (d) In what capitalization (capital risk) category would the bank be placed befor and afther operation and why? (5 points)