Question 4 (20 marks) (a) What is/are the goal and three pillars of the Basel III Accord? (10 marks) (b) National Bank has the following balance sheet (in millions) and has no off-balance sheet activities. Figures contained in the parenthesis represent the risk weights. Assets Cash (0) $20 Treasury bills (0) 40 Residential mortgages (0.5) 600 Liabilities and Equity Deposits $980 Subordinated debentures 25 Common stock Retained earnings 40 Total liabilities and equity $1,090 45 Business loans Total assets 430 $1,090 0 What is the Common Equity Tier 1 risk-based ratio? CH) What is the Tier I risk-based capital ratio? Cit) What is the total risk-based capital ratio? (iv) What is the leverage ratio? (W) In what capital risk category would the bank be placed? (2 mark) (2 mark) (2 mark) (2 mark) (2 mark)