Suppose Rutledge University Bank has $12 billion in risk-adjusted assets, including adjustments for off-balance-sheet activities, $460 million in CET1, $490 in Tier 1 capital, and $530 million in Tier 2 capital. Determine if RUB complies with the four key Basel III regulatory capital level requirements.

Formulas for Your Reference GAP=RSA - RSL ANII = GAP(AR) AP - D[Ai/(1 + i)]P DGAP = (DA-(L/A)DL) Effective Rate = Initial Cash Rate - ABasis AE =-(DGAP)x AX 4 1+i NE(AMc) (F. Mf) Expected rate movement on cash instrument Expectedrate movement on future contract (DA-TD)x TA Dex Price of Futures Contract NF N, -[(DA-KDL)xA] + [8 x D x B xbr] Ns = [(DA-KDL) AJ/(Dried - Draat) Basel Committee on Banking Supervision BANK FOR INTERNATIONAL SETTLEMENTS Basel III phase-in arrangements (All dates are as of 1 January) Phases 2013 2014 2015 2016 2017 2018 2019 Leverage Ratio Parallel run 1 Jan 2013 - 1 Jan 2017 Disclosure starts 1 lan 2015 Migration to Pilar Minimum Common Equity Capital Ratio 4.0% 4.5% 4.5% Capital Conservation Buffer 0.625% 1.25% 1.875% 2.5% Minimum common equity plus capital conservation buffer 3.5% 4.0% 45% 5.125% 5.75% 6.375% 7.0% Phase-in of deductions from CETI 40% 60% 80% 100% 100% Minimum Tier 1 Capital 5.5% 6.0% 6.0% Minimum Total Capital 8.0% 8.0% Minimum Total Capital plus conservation buffer 8.0% 8.625% 9.25% 9.875% 10.5% Capital Instruments that no longer quality as non-core Tier 1 capital or Tier 2 capital Phased out over 10 year horizon beginning 2013 Liquidity coverage ratio- minimum requirement 60% 70% 80% 90% 100% Liquidity Net stable funding ratio stud Including amounts exceeding the limit for deferred tax assets (DTAS), mortgage servicing rights (MSRs) and financials --transition periods Formulas for Your Reference GAP=RSA - RSL ANII = GAP(AR) AP - D[Ai/(1 + i)]P DGAP = (DA-(L/A)DL) Effective Rate = Initial Cash Rate - ABasis AE =-(DGAP)x AX 4 1+i NE(AMc) (F. Mf) Expected rate movement on cash instrument Expectedrate movement on future contract (DA-TD)x TA Dex Price of Futures Contract NF N, -[(DA-KDL)xA] + [8 x D x B xbr] Ns = [(DA-KDL) AJ/(Dried - Draat) Basel Committee on Banking Supervision BANK FOR INTERNATIONAL SETTLEMENTS Basel III phase-in arrangements (All dates are as of 1 January) Phases 2013 2014 2015 2016 2017 2018 2019 Leverage Ratio Parallel run 1 Jan 2013 - 1 Jan 2017 Disclosure starts 1 lan 2015 Migration to Pilar Minimum Common Equity Capital Ratio 4.0% 4.5% 4.5% Capital Conservation Buffer 0.625% 1.25% 1.875% 2.5% Minimum common equity plus capital conservation buffer 3.5% 4.0% 45% 5.125% 5.75% 6.375% 7.0% Phase-in of deductions from CETI 40% 60% 80% 100% 100% Minimum Tier 1 Capital 5.5% 6.0% 6.0% Minimum Total Capital 8.0% 8.0% Minimum Total Capital plus conservation buffer 8.0% 8.625% 9.25% 9.875% 10.5% Capital Instruments that no longer quality as non-core Tier 1 capital or Tier 2 capital Phased out over 10 year horizon beginning 2013 Liquidity coverage ratio- minimum requirement 60% 70% 80% 90% 100% Liquidity Net stable funding ratio stud Including amounts exceeding the limit for deferred tax assets (DTAS), mortgage servicing rights (MSRs) and financials --transition periods