The financial statements of C.I.T.Y. Bank, a UK universal bank based in London, are shown below: Balance Sheet (all values in [) Assets Liabilities Cash 450 Deposits 21.000 Deposits with other FIs 1,350 Rev Repo Agreements 10,710 Investments (OECD gov. bonds) 15,000 Equity 3,200 Repo Agreement 2,025 Loans 15,625 Reserve for loan losses (1.225) Premises 1.685 TA 34,910 TL 34.910 Income Statement (all values in E) Interest Income 2,800 Interest Expenses 1,600 Provision for Loan Losses 180 Non Interest Income 2,130 Non interest Expense 1,200 Taxes 90 a) Calculate: i) the bank's ROA and ROE (5 marks) ii) the bank's Net Interest Margin (5 marks) ill) the bank's liquidity ratio (5 marks) iv) the bank's capital ratio (5 marks)b) Explain how bank's decisions to borrow funds from the market to offset a reduction in deposits will affect the above balance sheet and income statement. How does this affect the liquidity position of the bank? (10 marks) c) Discuss the capital position of the bank and what information would be required to compute the risk- asset ratio under Basel I. What should the bank do if an increase in capital is needed to comply with regulation