Explain why regulators place a stronger focus on banks' Tier 1 capital compared to Tier 2 capital. Provide specific examples to illustrate the differences between these two capital tiers. Use the following information to answer part (B) ONLY. The following information applies to InterStellar Bank: Capital at start of the planning period $712 million Asset at start of the planning period $10,500 million Dividend payout ratio (per annum) 35% Asset growth rate (per annum) 12% Return on assets (per annum) 1.1% (i) Calculate the bank's projected capital ratio. (2 marks) (ii) If the target capital ratio is 8%, what is the capital shortage or excess in dollar terms? (2 marks) (iii) Detail three (3) possible courses of action which can help the bank resolve the above shortage/excess. (3 marks) Use the following information to answer part (C) ONLY. Under the Basel III capital adequacy framework, Newton Bank has estimated the following information (in millions). Total regulatory capital 140 Credit-risk weighted assets 800 320 Market-risk weighted assets Operational-risk weighted assets 450 (i) Calculate Newton Bank's total risk-based capital ratio. (2 marks) (ii) Does Newton Bank have sufficient total regulatory capital to meet the Basel III minimum capital requirements (including the capital conservation buffer)? (2 marks) In light of the current COVID-19 climate, clearly detail how Australian banks have responded in terms of their dividend payout and capital management strategies, and how APRA has adjusted bank capital expectations