1. Using the standard practices in the US banking industry, calculate the followings based on the information provided in the table:

1. Tier 1 risk-based capital adequacy ratio. (2)
2. Tier 2 risk-based capital adequacy ratio. (2)
3. Total risk based capital adequacy ratio (both T1 and T2). (2)
4. Is the bank complying with all the Basel I requirements? If not, provide recommendations on how the bank can be more compliant with Basel I requirements. (5)

On-Balance Sheet Items (Assets)
Cash	$ 10,000
Government Securities	30,000
Deposits held at other banks	5,000
Home loans to personal finance customers	20,000
Loans to private corporations	75,000
Total Balance Sheet Assets	$140,000
Off-Balance Sheet Items
Standby letters of credit backing corporate borrowings	$ 10,000
Long term unused loan commitments made to private corporations	20,000
Total Off-Balance Sheet Items	$30,000
Common Stock	$3,000
Cumulative Perpetual Preferred Stock	$6,000