9. Third Bank has the following balance sheet (in millions), with the risk weights in parentheses. (LG 13-7) Assets Cash (0%) OECD interbank Liabilities and Equity S 21 Deposits $176 Subordinated debt deposits (20%) Mortgage loans (50%) 70 Cumulative preferred stock Consumer loans (100%) 70 Equity Reserve for loan losses D Total liabilities and equity $185 Total assets 25 (5 years) $185 The cumulative preferred stock is qualifying and perpetual. In addition, the bank has $30 million in performance-related standby letters of credit (SLCs) to a public corporation, S40 million in two-year forward FX contracts that are currently in the money by $1 million, and $300 million in six-year interest rate swaps that are currently out of the money by $2 million. Credit conversion factors follow Performance-related standby letters of credit 1-to 5-year foreign exchange contracts 1- to 5-year interest rate swaps 5- to 10-year interest rate swaps 50% 0.5 1.5 a. What are the risk-adjusted on-balance-sheet assets of the bank as defined under the Basel Accord? b. To be adequately capitalized, what are the CET1, Tier I, and total capital required for both off- and on-balance- sheet assets? c. Disregarding the capital conservation buffer, does the bank have enough capital to meet the Basel require- ments? If not, what minimum CET1, additional Tier1, or total capital does it need to meet the requirement