Assume that the total risk-weighted assets (RWA) for bank is $ 210 billion and the current structure of capital shows Common equity Tier1 $ 3 Billion, Non-cumulative Preference shares $ 5 Billion and Subordinated debt (5 years) $ 8 Billion.

Which of the following statements is TRUE?

A.

The bank has enough capital to meet the minimum regulatory capital for common equity Tier 1 (CET1), Tier 1 and total capital.

B.

The bank has enough capital to meet the minimum regulatory capital for total regulatory capital only.

C.

The bank has enough capital to meet the minimum regulatory capital for Tier 1 capital only.

D.

None of the listed options is correct

E.

The bank doesnt have enough capital to meet the minimum regulatory capital for common equity Tier 1 (CET1), Tier 1 and total regulatory capital