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National Bank has the following balance sheet ( in millions ) and has no off - balance - sheet activities. Assets Liabilities and EquityCash $

National Bank has the following balance sheet (in millions) and has no off-balance-sheet activities. Assets Liabilities and EquityCash $ 20 Deposits $ 980Treasury bills 40 Subordinated debentures 25Residential mortgages 600 Common stock 45(category 1, loan-to-valueratio =70%)Retained earningsTotal liabilities and equity40$1,090Business loans 430Total assets $1,090 a.What is the CET1 risk-based ratio? b. What is the Tier I risk-based capital ratio? c. What is the total riskbased capital ratio? d. What is the leverage ratio? e. In what capital category would the bank be placed? f. What is the capital conservation buffer? How would this buffer affect youranswers to question a to e ? g. What is the countercylical capital buffer? If the home country set a countercycli-cal capital buffer of 2.5 percent, how would this buffer affect your answers toquestion a to e?

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