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QUESTION 5C. BANK CAPITAL (6 MARKS) Data for Menzies Bank is given below. Value ($million) Equity capital $80 Total regulatory capital $120 Credit-risk-weighted assets
QUESTION 5C. BANK CAPITAL (6 MARKS) Data for Menzies Bank is given below. Value ($million) Equity capital $80 Total regulatory capital $120 Credit-risk-weighted assets $720 Market-risk-weighted assets $120 Operational-risk-weighted $200 assets Total assets $1,500 (i) Calculate Menzies Bank's risk-based capital ratios for Common Equity Tier 1 and total regulatory capital (show all workings). (4 marks) (ii) Assess whether Menzies Bank has met the Basel III minimum requirements (including the capital conservation buffer) for each of the two (2) capital ratios calculated in part (i). (2 marks)
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