UNSW Bank has the following balance sheet (in millions), with the risk weights in parentheses. Assets Type $million Risk Weight Cash Mortgages Consumer loans Reserve for Loan Loss Liabilities and Equity Type $million 21 21 0 Deposit 50 50% 133 Subordinated debt 1 70 70 100% Preferred stock (qualifying for 1 (1) Additional Tier 1) Common stock 5 In addition, the bank has $32 million in commercial direct-credit substitute standby letters of credit to a public corporation and $79 million in 10-year FX forward contracts with a replacement cost of $-1 million (negative $1 million). The conversion factor for the standby letter of credit is 100% and for the forward contracts is 7.5%. The risk weight of a public corporation is 100%. Under Basel III, the minimum capital ratios are CET1 ratio 4.5%, Tier 1 capital ratio 6% and Total capital ratio 8% respectively.