This is the 201X Balance Sheet of the Bank B with annually average figures

Assets	Amount	Interest rate (%)	Risk weight (%)	Liabilities & Equity	Amount	Interest rate (%)
	(USD mil)				(USD mil)
Cash and deposits due from banks	150		0	Demand deposit	1,500	1
3-month Treasury Bills	550	1	100	3-month bank deposits	800	5
5-year fixed-rate Government Bonds	450	3	0	6-month corporate deposits	2,750	11
12-month floating-rate corporate loans	2,950	12	100	Non-deposit borrowings	1450	16
10 year fixed-rate mortgage loans	2,500	17	50	Equity	650
Fixed assets	550		100

This Bank earned USD 550 mil in fees and commissions and USD 20 mil in securities gain; paid USD 250 mil in overhead costs; USD 950 in loan loss provision. Tier 1 capital was equal to 35% of equity and Tier 2 capital was equal to 10% of non-deposit borrowings, deduction is USD 15 mil. Corporate income tax rate is 18%.

1. How much are: Net interest margin, ROE, CAR (20 points).
2. Assessing the capital adequacy level of the bank if minimum CAR should be 8%. How could the bank improve its capital adequacy level (10 points).