Exercise 2: This is the 2018 Balance Sheet of the Bank B with annually average figures Amount Assets Amount (USD mil) Interest rate (%) Risk weight (%) Liabilities & Equity (USD mil) Interest rate (%) 150 1,500 1 Cash and deposits due from banks 0 Demand deposit 550 1 800 5 3-month Treasury Bills 100 3-month bank deposits 450 3 2,750 11 5-year fixed-rate Government Bonds 0 6-month corporate deposits 12-month floating-rate 2,950 12 1450 16 100 Non-deposit borrowings corporate loans 2,500 17 650 10 year fixed-rate mortgage loans 50 Equity 550 Fixed assets 100 This Bank earned USD 550 mil in fees and commissions and USD 20 mil in securities gain; paid USD 250 mil in overhead costs; USD 950 million in loan loss provision. Tier 1 capital was equal to 35% of equity and Tier 2 capital was equal to 10% of non-deposit borrowings, deduction is USD 15 mil. Corporate income tax rate is 18%. a. How much are: Net interest margin, ROE, CAR