Third Bank has the following balance sheet $($in millions$),$ with the risk weights in

parentheses.

Assets Liabilities and Equity

Cash $(0\%)$ $$21$ Deposits $$176$

OECD interbank deposits $(20\%)25$ Subordinated debt $(5$ years$)2$

Mortgage loans $(50\%)70$ Cumulative preferred stock $2$

Consumer loans $(100\%)70$ Equity $5$

Reserve for loan losses $(1)$

Total assets $$185$ Total liabilities and equity $$185$

The cumulative preferred stock is qualifying and perpetual. In addition, the bank has $$30$

million in performance$-$related standby letters of credit $($SLCs$)$ to a public corporation, $$40$

million in two$-$year forward FX contracts that are currently in the money by $$1$ million, and

$$300$ million in six$-$year interest rate swaps that are currently out of the money by $$2$

million. Credit conversion factors follow:

Performance$-$related standby LCs $50\%$

$1-$ to $5-$year foreign exchange contracts $5\%1-$ to $5-$year interest rate swaps $0\mathrm{.}5\%$

$5-$ to $10-$year interest rate swaps $1\mathrm{.}5\%$

a$.$ What are the risk$-$weighted on$-$balance$-$sheet assets of the bank as defined under the

Basel Accord?

b$.$ To be adequately capitalized, what are the CET$1,$ Tier I, and total capital required for

both off$-$ and on$-$balance$-$sheet assets?

c$.$ Disregarding the capital conservation buffer, does the bank have enough capital to meet

the Basel requirements? If not, what minimum CET$1,$ additional Tier $1,$ or total capital

does it need to meet the requirement?

d$.$ Does the bank have enough capital to meet the Basel requirements, including the capital conservation buffer requirement? If not, what minimum CET$1,$ additional Tier $1,$ or total capital does it need to meet the requirement $?$