Cash equivalents 8,000 Deposits 100,000 Mortgage loans 100,000 Shareholders' equity 8,000 Total assets 108,000 Total liabilities and equity 108,000 Interest income 5,000 Interest expense 1,000 Net interest income 4,000 Non interest income 0 Operating expense 3,000 Pre-tax operating profit 1,000 Taxes 330 Net income 670 current capital requirement on risk weighted capital ratio is 8%. Cash equivalents are in safest assets (AAA government note), and the loans receive 50% weight,