2. A bank has the asset structure in 2008 and 2021 as shown in the table. Insert the appropriate risk weights and calculate the total on-balance-sheet risk-weighted assets for the bank. Calculate the credit equivalent amounts of risk-weighted assets for the banks off-balance-sheet items. What are the amounts of total risk-weighted assets? Calculate the minimum total capital requirement and minimum Tier 1 capital requirement as stipulated under the risk-assets ratio framework. The table reports the banks actual Total Capital Ratio and Tier 1 Capital Ratio. Use these data to calculate the amounts of total capital and Tier 1 capital the bank was holding.

Abridged Balance Sheet; please complete

	Assets, m			RWA	, m
	2008	2021	Risk Weight	2008	2021
Cash	12,400	177,757	0%	-	-
Interbank loans	138,197	52,217	20%	Ass2008*RW= RWA	Ass2021*RW= RWA
Securities maturing within 1 year	1,308,138	167,623	20%
Mortgage loans	265,683	108,839	50%
Commercial and industrial loans	619,928	253,957	100%
Total assets	2,401,652	781,992
Unused loan commitments	43,326	18,910	0%
Commercial letters of credit	21,663	31,516	20%
Revolving underwriting facilities	151,641	31,516	50%
Standby letters of credit	216,631	44,123	100%
Off-balance sheet items	433,261	126,065
Total assets + OBS	2,834,913	908,057
Total capital			8%
Tier 1 capital			4%
Total capital ratio	14.1	24.1
Tier 1 capital ratio	10.0	20.7