A. TMK Bank has the following balance sheet (in millions of dollars) with the risk weights in parentheses. Assets Liabilities and equity Cash (0%) $40 Deposits $350 55 Subordinated debt (5 years) 20 Interbank deposits with AA rated banks (20%) Standard residential mortgages (50%) 100 Non-cumulative preference shares 15 Business loans to BB rated borrowers (100%) 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. ii. Calculate Tier 1 CAR, Common Equity Tier 1 CAR, and Total CAR and compare them with Basel III requirements. [4 marks] A. TMK Bank has the following balance sheet (in millions of dollars) with the risk weights in parentheses. Assets Liabilities and equity Cash (0%) $40 Deposits $350 55 Subordinated debt (5 years) 20 Interbank deposits with AA rated banks (20%) Standard residential mortgages (50%) 100 Non-cumulative preference shares 15 Business loans to BB rated borrowers (100%) 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. ii. Calculate Tier 1 CAR, Common Equity Tier 1 CAR, and Total CAR and compare them with Basel III requirements. [4 marks]