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( Capital Adequacy under Basel I ) National Bank has the following balance sheet ( amount in millions ) . * uninsured mortgage. The bank

(Capital Adequacy under Basel I) National Bank has the following balance sheet
(amount in millions).
*uninsured mortgage.
The bank also has off-balance sheet items including $40 million of Amazon
performance bonds, $30 million bankers' acceptance from an OECD bank and
$20 million forward purchase of crude oil from OECD public sector entity.
Under Basel I Accord:
(a) What is the risk-weighted on-balance-sheet asset? What is the risk-weighted
off-balance-sheet asset?
(b) What is the minimum level of total regulatory capital and Tier 1 capital
required, respectively?
(c) What are the amounts of Tier 1 and Tier 2 capitals available from National
Bank, respectively? Does the bank have adequate total regulatory capital
and Tier 1 capital?
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