To avoid insolvency, regulators decide to provide the bank with $25 million in bank capital. However, the bad news about the mortgages is featured in the local newspaper, causing a bank run. As a result, $30 million in deposits is withdrawn. Show the effects of the capital injection and the bank run on the balance sheet. Was the capital injection enough to stabilize the bank? If the bank regulators decide that the bank needs a capital ratio of 10% to prevent further runs on the bank, how much of an additional capital injection is required to reach a 10% capital ratio?

Consider a bank with the following balance sheet:

Assets		Liabilities
Required reserves	$?8 million	Checkable deposits	$100 million
Excess reserves	$?3 million	Bank capital	$??6 million
T-bills	$45 million
Commercialloans	$50 million

The bank makes a loan commitment for $10 million to a commercial customer. Calculate the bank’s capital ratio before and after the agreement. Calculate the bank’s risk-weighted assets before and after the agreement.