HTC Bank has the following balance sheet (in millions of dollars):

Assets	$	Liquidity level	Liabilities and Equity	$	Run- off facto r
Cash	11	Level 1	Stable retail deposits	63	3%
Deposits at the Fed	15	Level 1	Less stable retail deposits	15	10%
Treasury securities	113	Level 1	Unsecured wholesale funding from:
GNMA securities	87	Level 2A	Stable small business deposits	74	5%
Loans to AA rated corporations	148	Level 2A	Less stable small business deposits	55	10%
Loans to BB rated corporations	114	Level 2B	Nonfinancial corporates	227	75%
Premises	20		Equity	74
Total	508		Total	508

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).

Hint: UnderBASEL III, 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 liquid asset.