Solve the following Question: Calculate the risk-adjusted assets for operational risk.

Monash Bank has the following balance sheet for 2018 (in millions of dollars). Assets Liabilities and equity $15 Deposits $155 20 Subordinated debt (5 years) 4 Cash Interbank deposits with AA rated banks Standard residential mortgages non- insured with LVR of 85% Business Loans to BB rated borrowers Total assets 70 Non-Cumulative preference shares 5 70 Common Equity 11 $175 Total liabilities and equity $175 In addition, the bank has $30 million in performance-related standby letters of credit (SLCs), $50 million in two-year forward FX contracts that are currently in the money by $4 million, and $300 million in six-year interest rate swaps that are currently out of the money by $1 million. Assume all off-balance sheet items counterparties are BBB+ rated according to Standard and Poor's rating. Meanwhile, the bank also has bank operational business specified as follows: Half-year H1 20*1 H2 20*1 H1 20*2 H2 20*2 H1 20*3 H2 20*3 Retail gross outstanding and advances $ million 38 42 35 40 42 39 Commercial gross outstanding loans and advances $ million 73 78 81 80 77 79 All other activity adjusted gross income $ million 0.9 1.1 1.2 0.8 0.9 1.1 Monash Bank has the following balance sheet for 2018 (in millions of dollars). Assets Liabilities and equity $15 Deposits $155 20 Subordinated debt (5 years) 4 Cash Interbank deposits with AA rated banks Standard residential mortgages non- insured with LVR of 85% Business Loans to BB rated borrowers Total assets 70 Non-Cumulative preference shares 5 70 Common Equity 11 $175 Total liabilities and equity $175 In addition, the bank has $30 million in performance-related standby letters of credit (SLCs), $50 million in two-year forward FX contracts that are currently in the money by $4 million, and $300 million in six-year interest rate swaps that are currently out of the money by $1 million. Assume all off-balance sheet items counterparties are BBB+ rated according to Standard and Poor's rating. Meanwhile, the bank also has bank operational business specified as follows: Half-year H1 20*1 H2 20*1 H1 20*2 H2 20*2 H1 20*3 H2 20*3 Retail gross outstanding and advances $ million 38 42 35 40 42 39 Commercial gross outstanding loans and advances $ million 73 78 81 80 77 79 All other activity adjusted gross income $ million 0.9 1.1 1.2 0.8 0.9