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QUESTION 5C. BANK CAPITAL (6 MARKS) Data for Menzies Bank is given below. Value (Smillion) Equity capital $80 $120 $720 Total regulatory capital Credit-risk-weighted assets

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QUESTION 5C. BANK CAPITAL (6 MARKS) Data for Menzies Bank is given below. Value (Smillion) Equity capital $80 $120 $720 Total regulatory capital Credit-risk-weighted assets Market-risk-weighted assets Operational-risk-weighted assets $120 $200 Total assets $1,500 (0) 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 (1). (2 marks)

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