The Basel Accord requires banks to hold capital at a certain percentage of their total risk-weighed assets. The assets are allocated into four categories, each with a different weight to reflect the degree of credit risk (see the table below).

Risk weight	Asset categories
0%	Reserves and government securities
20%	Claims on banks (e.g., holdings of bonds issued by other banks)
50%	Municipal bonds, residential mortgages
100%	Loans to consumers and companies

Consider a bank with the following balance sheet:

Assets		Liabilities & Equity
Desired Reserves	$9.6 million	Chequable Deposits	$120 million
Excess Reserves	$1.4 million
Treasury bills	$20 million	Bank Capital	$ 6 million
Residential mortgages	$45 million
Commercial Loans	$50 million

(a) Calculate the banks risk-weighted capital ratio. (3 points)

(b) Suppose that the bank regulator decides that the bank needs a risk-weighted capital ratio of 10%. Based on the banks balance sheet, how much of an additional capital injection is required in order to reach the 10% target? (2 points)