A bank has the following balance sheet for 2020. Also shown are the respective interest rates:

Assets amount ($MM) rate, %

Business Loans 50 6

Corporate Bonds 26 5

Government Bonds 18 2.5

Cash 7

Real assets 2

Liabilities

Demand Deposits 36 0

Time Deposits 45 1.1

Inter-Bank Borrowing 16 1.25

Preferred Equity 1

Common Equity 5

Off-Balance Sheet Item

Of the business loans above, $10MM was drawn from a $35MM Credit Line. That is, assume the average amount of the Line drawn during the year is $10MM. The bank charges 0.25% for unused lines of credit.

Assume reserve requirement are 3% for demand deposits, 0% for time deposits. How much excess reserves does the bank have?