In the 2008 global financial crisis many banks faced both a liquidity shock and a solvency shock. Discuss the main causes of each of these shocks and explain how regulators and governments responded to the illiquidity/insolvency faced by banks. (25 marks) a) Critically discuss the use of the risk assets ratio used to assess the capital adequacy of banks in the Basel regulatory framework. (10 marks) b) Discuss the changes to the Basel framework for regulating banks introduced by Basel 3 and discuss the extent to which they make a banking crisis less likely. (15 marks)