(i) Calculate Menzies Banks risk-based capital ratios for Common Equity Tier 1 and total regulatory capital (show all workings). (4 marks)

(ii) Assess whether Menzies Bank has met the Basel III minimum requirements (including the capital conservation buffer) for each of the two (2) capital ratios calculated in part (i). (2 marks)

Data for Menzies Bank is given below. Value ($million) Equity capital $60 Total regulatory capital $100 Credit-risk-weighted assets $620 Market-risk-weighted assets $120 Operational-risk-weighted assets $200 Total assets $1,500 Data for Menzies Bank is given below. Value ($million) Equity capital $60 Total regulatory capital $100 Credit-risk-weighted assets $620 Market-risk-weighted assets $120 Operational-risk-weighted assets $200 Total assets $1,500