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Ithala Bank has R140m in assets composed of R50m in government loans, R30m in mortgage loans, R45m in corporate loans and R15m in investments. The

Ithala Bank has R140m in assets composed of R50m in government loans, R30m in mortgage loans, R45m in corporate loans and R15m in investments. The corresponding risk weights defined by the entity are 0% for government, 45% for mortgage loans, 100% for corporate and 25% for investments. Based on these assets, what would be the banks capital adequacy requirements? (10) marks

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