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How to calculate this? OhBank is a small Australian bank. The government regulator has provided OhBank with the following table of risk weights of different

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How to calculate this?

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OhBank is a small Australian bank. The government regulator has provided OhBank with the following table of risk weights of different residential mortgage types: STANDARD ELIGIBLE MORTGAGES -STANDARD ELIGIBLE MORTGAGES LVR (%) No LMI At least 40% insured At least 40% insured with LM No LMI with LM 0-60 35% 35% 50% 5% 60.01-80 35% 35% 75% 50% 80.01-90 50% 35% 100% 75% 90.01-100 75% 50% 100% 5% >100.01 100% 75% 100% 100% 'LMI" = Lenders Mortgage Insurance You have the following formation about some home loans that OhBank Bank issued recently: . A loan of $475,000 to Mr Singh who purchased an apartment for $500,000. Mr Singh took out lenders mortgage insurance ("LMI") on the full value of the property. . A loan to Mr & Mrs Huang for a house at a purchase price of $3.5 million. They chose not to take out LMI. They put down a deposit of $0.875 million toward the purchase price. A loan to Bad Luck Brian, who borrowed 85% of his house's $500,000 purchase price and obtained full LMI. Since taking possession of the house, Brian's house has been exposed to a toxic chemical leak. OhBank's independent valuer estimates this will cause Brian's house to fall in value by 95%. In addition, they estimate the property will not be able to be sold for 10 years. Assuming Basel Ill requirements, what is the minimum amount of total capital (T1 + T2) required to support these 3 mortgages? Select one: O a. $0.2820 million O b. I am unable to answer this question and accept 0 marks. O c. $0.2630 million O d. $0.1265 million O e. $0.1963 million O f. $0.1523 million O g. $0. 1065 million O h. $0.0775 million

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