Part 4 The following is a balance sheet of the Gamma bank in millions of...

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Part 4 The following is a balance sheet of the Gamma bank in millions of dollars Assets Required reserves 8 Excess reserves 17 Treasury bills 30 Commercial Loans 37 Mortgage 8 X Liabilities Checkable Deposits 80 CB Loans 13 Common Stock 5 Bad debt provision 2 1 What is the non risk based capital requirement of Gamma Bank Does it comply with Basel 3 standard 5 points 2 What is the Tier 1 capital ratio 5 points 3 The bank makes a loan commitment of 15 million to a commercial customer and discovers 1 million bad loans that should write off from the balance sheet Calculate the bank s Tier 1 capital ratio before and after the agreement 5 points Note Show all the details of balance sheet analysis 4 In what capitalization capital risk category would the bank be placed before and after the operation and why 5 points

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