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(a). Based on the information provided, calculate the capital adequacy ratio weighted for Bank B. RM (million) 5 Risk weight 0 15 0 10 0

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(a). Based on the information provided, calculate the capital adequacy ratio weighted for Bank B. RM (million) 5 Risk weight 0 15 0 10 0 Assets Reserve Treasury bills Government securities Other securities Government Bonds Mortgage loans Commercial lending Fixed assets 20 0.2 0.5 18 0.5 35 1 5 1 (b). If the bank's capital is RM5 million, explain the rate weighted capital adequacy ratio of 8% set for the bank is good enough

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