Waver Bank
	Balance Sheet
Asset	$	Liabilities & OE	$
Cash	5000	Demand deposit	60000
Reserve	3000	Time deposit	90000
Marketable securities	10000	Other borrowing	45000
Inventory	2000	Accruals	2000
Corporate Loans	80000	N/P	1000
Loans to wealth management	20000	Total Liabilities	198000
Mortgage	40000	OE	11000
Unsecured loan	10000
Loan to PLC	25000
Consumer loan	10000
N/R	1000
Land	2000
Equipments	1000
Total Assets	209000	Total Liabilities & OE	209000

Off balance sheet items	$
Standby letter of credit	10000
Long term credit commitments	5000
Total off balance sheet	15000

(SLC Conversion factor 20%, Unused loan commitment conversion factor 30%)

Tier 1 Capital is $20,000 and Tier 2 capital is $15,000

According to BASEL I,

(Risk-weighting category: 0% for cash, reserve and marketable securities, 20% for Deposit at other banks and SLC, 50% for home loans, 100% for all loans, Unused commitment)

You need to find out if the Waver Bank is BASEL I compliant and at the same time their interest rate GAP status. If they are not BASEL I compliant, what do they need to do to ensure compliance? Also, if the government increases treasury bill yield, how will that affect the banks NIM? You need to be very specific about your recommendations.