Consider the following simplified balance sheet, which is loosely based on the balance sheet from Truist. Answer ALL parts for full credit.

A) What is the capital ratio for this bank?

[Use the full capital ratio that accounts for all the assets irrespective of risk, as you would ordinarily calculate for non-bank firms.]

[ Note: For banks, this is sometimes referred to the as the Supplemental Leverage Ratio to distinguish it from risk-weighted based capital ratios. Above 5% is considered good.]

B) Consider the intangible assets shown in this balance sheet (i.e. Goodwill). Goodwill is not only an intangible asset, but also an illiquid asset. What is the effective capital ratio of this bank if you were to ignore this balance sheet item?

C) After comparing your answers between (A) and (B), what is your conclusion about the bank's capital adequacy (i.e. the "C" in CAMELS)?