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7. (a) Considering the information below, discuss whether this bank complies with Basel III's capital adequacy and liquidity requirements. Assume the bank is only exposed

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7. (a) Considering the information below, discuss whether this bank complies with Basel III's capital adequacy and liquidity requirements. Assume the bank is only exposed to credit risk. List any further assumptions (if any) and show all your workings. (16 marks) (b) Had the bank been exposed to other risks, how would this have been factored into the bank's regulatory ratios under Basel III, if at all? Ensure you name and define the relevant risks. (6 marks) (c) Describe the risks associated with 'self-assessment' in the context of capital adequacy, and describe the measure the Bank of England has adopted to address these concerns. (8 marks) 7. (a) Considering the information below, discuss whether this bank complies with Basel III's capital adequacy and liquidity requirements. Assume the bank is only exposed to credit risk. List any further assumptions (if any) and show all your workings. (16 marks) (b) Had the bank been exposed to other risks, how would this have been factored into the bank's regulatory ratios under Basel III, if at all? Ensure you name and define the relevant risks. (6 marks) (c) Describe the risks associated with 'self-assessment' in the context of capital adequacy, and describe the measure the Bank of England has adopted to address these concerns. (8 marks)

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