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Bank L's balance sheet (in millions) is provided below. The bank does not have any off-balance- sheet activity. 9.1 (5 points) Please calculate Tier 1

Bank L's balance sheet (in millions) is provided below. The bank does not have any off-balance- sheet activity. 9.1 (5 points) Please calculate Tier 1 risk-based capital ratio of the bank. 9.2. (5 points) Please calculate the total risk-based capital ratio of this bank Assets Liabilities and Equity Cash $20 Deposits $980 Treasury $40 Subordinated $25 bonds (risk- debentures weight=0) Mortgage loans (risk- $600 Common $45 stock weight-50%) Business $430 Retained $40 Loans (risk- earnings weight=100%) Total assets $1,090 Total $1,090 liabilities and equity

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