The following is an extract from the asset side of the balance sheet of a commercial bank incorporated in Zambia.
Asset Dollars
Treasury Bills 100,000.00
Interbank Loans 500,000.00
Mortgages 300,000.00
Consumer Loans 200,000.00
Corporate Loans 200,000.00
Total 1,300,000.00
a) What is the total of the Bank risk weighted assets?
b) The Bank has K35 000 in its Tier 1 capital. Does the Bank meet its primary regulatory capital requirement?
c) The Bank’s Tier 2 capital amounts $20 million. What is the total capital adequacy position of the bank?