Bank's balance sheet, leverage and capital requirements. Consider a commercial bank with a balance sheet as in a table below: 1. What's the leverage ratio of this bank (the ratio of own capital, i.e. equity, to total assets)? 2. Assume that 5% of the bank's loans turn into non-performing ones, i.e. with zero value. How the bank's balance sheet will look after this negative shock? 3. What is the maximum share of bank's loans that can turn into non-performing before it declares bankruptcy (the situation when the sum of liabilities exceeds the sum of assets)? 4. Back to the original balance sheet. Assume now that the regulator requires the bank's owners to increase its capital to 300 by depositing extra 200 into reserves. What the new balance sheet will look like? What will be the new leverage ratio? What will be the maximum negative shock to loans that the bank can now withstand