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Under the Basel III capital adequacy framework, Newton Bank has estimated the following information (in millions). Total regulatory capital 140 Credit-risk weighted assets 800 Market-risk
Under the Basel III capital adequacy framework, Newton Bank has estimated the following information (in millions). Total regulatory capital 140 Credit-risk weighted assets 800 Market-risk weighted assets 320 Operational-risk weighted assets 450 (i) Calculate Newton Bank's total risk-based capital ratio. (2 marks) (ii) Does Newton Bank have sufficient total regulatory capital to meet the Basel III minimum capital requirements (including the capital conservation buffer)? (2 marks)
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