ANZ Bank is a major Australian bank that specialises in providing home loans to citizens in all national cities. APRA, the relevant domestic regulator has published the following table of risk weights of different residential mortgage types for the purpose of assessing whether a bank's capital adequacy requirements have been met. STANDARD ELIGIBLE MORTGAGES At least 40% insured No LMI with LMI LVR (%) NON-STANDARD ELIGIBLE MORTGAGES At least 40% insured No LMI with LMI 50% 35% 0-60 35% 35% 60.01-80 35% 35% 75% 50% 80.01-90 50% 35% 100% 75% 90.01-100 75% 50% 100% 75% >100.01 100% 75% 100% 100% "LMI" = Lenders Mortgage Insurance You have the following formation about some home loans that ANZ Bank issued recently A loan to Mr & Mrs Huang for buying a 6-bedroom house in Coffs Harbour at a purchase price of $2.6 million. They chose not to take out LMI, despite repeated suggestions from their loan officer. After much saving, they were able to put down a deposit of $0.65 million toward the purchase price. A loan of $570,000 to Mr Singh, a young bachelor who purchased an apartment in Wollongong for $600,000. Mr Singh took out lenders mortgage insurance ("LMI") on the full value of the property. A loan to Bad Luck Brian, who borrowed 85% of his house's $600,000 purchase price and obtained full LMI. Since taking possession of the house, Brian's house has been exposed to a toxic chemical leak. ANZ's independent valuer estimates this will cause Brian's house to fall in value by 95%. In addition, they estimate the property will not be able to be sold for 10 years. According to APRA's requirements of ANZ to meet "unquestionably strong" benchmark, what is the minimum amount of CET1 capital required to support these 3 mortgages? O a. I am unable to answer this question and accept O marks. O b. $0.2196 million O c. $0.1182 million O d. $0.1636 million e. $0.2424 million O f. $0.1417 million O g. $0.1038 million Oh. $0.1769 million