HTC Bank has the following balance sheet (in millions of dollars): Assets $ Liquidity level Liabilities and Equity $ Run- off facto r Cash Deposits at the Fed Treasury securities GNMA securities Loans to AA rated corporations Loans to BB rated corporations Premises Total 11 Level 1 15 Level 1 113 Level 1 87 Level 2A 148 Level 2A 114 Level 2B 20 508 Stable retail deposits Less stable retail deposits Unsecured wholesale funding from: Stable small business 63 3% 15 10% 74 5% 55 10% 227 75% 74 508 deposits Less stable business deposits Nonfinancial corporates Equity Total small Cash inflows over the next 30 days from the HTC Bank's performing assets are $7.25 million. Calculate the Liquidity Coverage Ratio (LCR) for HTC Bank (8 Marks). Does the HTC Bank comply with the liquidity requirement under Basel III based on the LCR (1 Mark)? Please state the reason (1 Mark). BASEL III Hint: Under , level 1 assets are not discounted when calculating the LCR, while level 2A and level 2B assets have a 15% and a 50% discount, respectively. For level 2 assets, there is also a 40% cap based on the amount of Level 1 high quality