QUESTION 15 Asset Risk Weighted Assets Amount ($b) 4.5 Risk Weight 0% ES funds T-notes and CG bonds 5.5 0% 190 75% 142.5 Home loans (LVR 85%) Business loans 60 100% 60 150 100% 150 Total 410 352.5 The bank has the following types of capital: CET1 = $20b = 5.7% , Total Tier 1 = $24.1b = 6.8%, Total Equity = $25.5b.=7.2% Does the bank meet its capital adequacy requirements? Yes, everything is fine. No, it is violating all minimum capital adequacy ratios O No, it has enough total capital but insufficient CET1