This is the 201X Balance Sheet of the Bank B with annually average figures Amount Interest Amount Interest Assets (USD rate Liabilities & Equity (USD mil) (%) rate (%) mil) Cash and deposits due 150 1,500 1 Demand deposit from banks 3-month Treasury 550 1 3-month bank 800 5 Bills deposits 5-year fixed-rate 450 3 6-month corporate 2,750 11 Government Bonds deposits 12-month floating-rate 2,950 12 Non-deposit 1450 16 corporate loans borrowings 10 year fixed-rate 2,500 17 650 mortgage loans Equity 550 Fixed assets 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%. a. How much are: Net interest margin, ROE, CAR b. How can the bank increase its ROE 1.5 times (two options: increasing average lending rates or reducing average deposit rates)