5. On Bank of New Folks balance sheet, there are: Residential real estate loans, $300 million;

Government securities, $150 million;

Cash, $200 million;

U.S. and corporate loans, $350 million.

The off-balance-sheet items are:

Standby credit letters, $50 million;

Long-term credit commitments to corporations, $150 million.

The conversion factor for converting standby credit letters into equivalent amounts of on-balance sheet assets is 0.2; The conversion factor for converting long-term commitments to corporations into equivalent amounts of on-balance sheet assets is 0.5.

i. What are Bank of New Folks total risk-weighted assets?

ii. If the bank reports Tier 1 capital of $24 million and Tier 2 capital of $25 million, does it have a capital deficiency problem?