A. TMK Bank has the following balance sheet (in millions of dollars) with the risk weights in parentheses. Assets Liabilities and equity $40 Deposits 55 Subordinated debt (5 years) $350 20 Cash (0%) Interbank deposits with AA rated banks (20%) Standard residential mortgages (50%) Business loans to BB rated borrowers (100%) 15 100 Non-cumulative preference shares 210 Common equity 20 Total assets $405 Total liabilities and equity $405 In addition, TMK Bank has $40 million in performance-related standby letters of credit (SLCs) with credit conversion factor of 50%. Consider capital conservation buffer and assume that APRA suggests 1% countercyclical capital buffer due to COVID related effects. i. What is the total minimum capital required under Basel III? [1 mark] A. TMK Bank has the following balance sheet (in millions of dollars) with the risk weights in parentheses. Assets Liabilities and equity $40 Deposits 55 Subordinated debt (5 years) $350 20 Cash (0%) Interbank deposits with AA rated banks (20%) Standard residential mortgages (50%) Business loans to BB rated borrowers (100%) 15 100 Non-cumulative preference shares 210 Common equity 20 Total assets $405 Total liabilities and equity $405 In addition, TMK Bank has $40 million in performance-related standby letters of credit (SLCs) with credit conversion factor of 50%. Consider capital conservation buffer and assume that APRA suggests 1% countercyclical capital buffer due to COVID related effects. i. What is the total minimum capital required under Basel III? [1 mark]