Basel I standards require 4% of book value of assets in Tier I capital and 8% risk based capital in total (Tier I + Tier II) capital. A bank has assets with book value of $100 million and risk weighted capital of $50 million. If the bank has $8 million is Tier I capial how much does the bank need to have in Tier II capital? $3 million $4 million $5 million $6 million