Third Bank has the following balance sheet (in millions of dollars) with the risk weights in parentheses.

Assets		Liabilities and equity
Cash (0%)	$20	Deposits	$175
Interbank deposits with AA rated banks (20%)	25	Subordinated debt (5 years)	3
Standard residential mortgages non-insured with LVR of 85% (50%)	70	Cumulative preference shares	5
Business loans to BB rated borrowers (100%)	70	Common equity	2
Total assets	$185	Total liabilities and equity	$185

In addition, the bank has $30 million in performance-related standby letters of credit (SLCs), $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 are:

Performance-related standby LCs	50%
15 year foreign exchange contracts	5%
15 year interest rate swaps	0.5%
510 year interest rate swaps	1.5%

(a) What are the risk-adjusted on-balance-sheet assets of the bank as defined under the Basel Accord? (4 marks)

(b) What is the total capital required for both off- and on-balance-sheet assets? (5 marks)

(c) Does the bank have enough capital to meet the regulatory capital requirements? If not, what minimum Tier 1 or total capital does it need to meet the requirement? (5 marks)