Q3). The initial T-accounts of Bank A and Bank B are as follows: Bank A Assets Liabilities Reserves $65 mil Deposits $585 mil Loans $585 mil Bank $65 mil Bank B Assets Liabilities Reserves $65 mil Deposits $624 mil Loans $585 mil Bank $26 mil a. Suppose each of both banks needs to write off bad loans of $32.5 million, prepare new T-accounts for both banks. What problem is Bank B facing? (9 marks) b. Given the return on assets (k%), the higher the bank capital is, the lower will be the return on equity for the owners of the bank. Do you agree? Use the information from the initial T-accounts of Bank A and Bank B to support your answer. (Hint: Return on equity = Return on assets x Equity multiplier) 6 marks)