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This question is worth positive 2 marks for a correct answer. This question is worth negative 2 marks for an incorrect answer. Please select the neutral response for no penalty if you believe you are unable to answer this question. ANZ Bank is a major Australian bank that specialises in providing home loans to citizens in all national cities. APRA the relevant domestic regulator has published the following table of risk weights of different residential mortgage types for the purpose of assessing whether a bank's capital adequacy requirements have been met. STANDARD ELIGIBLE MORTGAGES NON-STANDARD ELIGIBLE MORTGAGES At least 40% insured LVR (%) No LMI At least 40% insured No LMI with LMI with LMI 0-60 35% 35% 50% 35% 60.01-80 35% 35% 7596 509 80.01-90 50% 3596 100% 75% 90.01-100 75% 5096 100% 7596 >100.01 100% 75% 100% 100% "LMI" Lenders Mortgage Insurance You have the following formation about some home loans that ANZ Bank issued recently A loan to Mr & Mrs Huang for buying a 6-bedroom house in Coffs Harbour at a purchase price of 53.7 million. They chose not to take out LMI, despite repeated suggestions from their loan officer. After much saving, they were able to put down a deposit of 50.925 million toward the purchase price who nicchised an apartment in Wollongong for $600,000, Mr Singh took out lenders WN "LMI" Lenders Mortgage Insurance You have the following formation about some home loans that ANZ Bank issued recently A loan to Mr & Mrs Huang for buying a 6-bedroom house in Cotts Harbour at a purchase price of $3.7 million. They chose not to take out LMI, despite repeated suggestions from their loan officer. After much saving, they were able to put down a deposit of $0.925 million toward the purchase price A loan of $570,000 to Mr Singh a young bachelor who purchased an apartment in Wollongong for $600.000. Mr Singh took out fenders mortgage insurance ("LMI") on the full value of the property. A loan to Bad Luck Brian, who borrowed 85% of his house's $900,000 purchase price and obtained fult Mi. Since taking possession of the house. Brian's house has been exposed to a toxic chemical leak. ANZ's independent valuer estimates this will cause Brian's house to fall in value by 95%. In addition, they estimate the property will not be able to be sold for 10 years. According to APRA's requirements of ANZ to meet "unquestionably strong" benchmark what is the minimum amount of CET1 capital required to support these 3 mortgages? a. $0.3288 million b. I am unable to answer this question and accept O marks. O c. 50.2284 million O d. 50.1356 million e. $0.3060 million f. 50.1617 million O g. 50.2470 million Oh $0.1921 million WN "LMI" Lenders Mortgage Insurance You have the following formation about some home loans that ANZ Bank issued recently A loan to Mr & Mrs Huang for buying a 6-bedroom house in Cotts Harbour at a purchase price of $3.7 million. They chose not to take out LMI, despite repeated suggestions from their loan officer. After much saving, they were able to put down a deposit of $0.925 million toward the purchase price A loan of $570,000 to Mr Singh a young bachelor who purchased an apartment in Wollongong for $600.000. Mr Singh took out fenders mortgage insurance ("LMI") on the full value of the property. A loan to Bad Luck Brian, who borrowed 85% of his house's $900,000 purchase price and obtained fult Mi. Since taking possession of the house. Brian's house has been exposed to a toxic chemical leak. ANZ's independent valuer estimates this will cause Brian's house to fall in value by 95%. In addition, they estimate the property will not be able to be sold for 10 years. According to APRA's requirements of ANZ to meet "unquestionably strong" benchmark what is the minimum amount of CET1 capital required to support these 3 mortgages? a. $0.3288 million b. I am unable to answer this question and accept O marks. O c. 50.2284 million O d. 50.1356 million e. $0.3060 million f. 50.1617 million O g. 50.2470 million Oh $0.1921 million This question is worth positive 2 marks for a correct answer. This question is worth negative 2 marks for an incorrect answer. Please select the neutral response for no penalty if you believe you are unable to answer this question. ANZ Bank is a major Australian bank that specialises in providing home loans to citizens in all national cities. APRA the relevant domestic regulator has published the following table of risk weights of different residential mortgage types for the purpose of assessing whether a bank's capital adequacy requirements have been met. STANDARD ELIGIBLE MORTGAGES NON-STANDARD ELIGIBLE MORTGAGES At least 40% insured LVR (%) No LMI At least 40% insured No LMI with LMI with LMI 0-60 35% 35% 50% 35% 60.01-80 35% 35% 7596 509 80.01-90 50% 3596 100% 75% 90.01-100 75% 5096 100% 7596 >100.01 100% 75% 100% 100% "LMI" Lenders Mortgage Insurance You have the following formation about some home loans that ANZ Bank issued recently A loan to Mr & Mrs Huang for buying a 6-bedroom house in Coffs Harbour at a purchase price of 53.7 million. They chose not to take out LMI, despite repeated suggestions from their loan officer. After much saving, they were able to put down a deposit of 50.925 million toward the purchase price who nicchised an apartment in Wollongong for $600,000, Mr Singh took out lenders WN "LMI" Lenders Mortgage Insurance You have the following formation about some home loans that ANZ Bank issued recently A loan to Mr & Mrs Huang for buying a 6-bedroom house in Cotts Harbour at a purchase price of $3.7 million. They chose not to take out LMI, despite repeated suggestions from their loan officer. After much saving, they were able to put down a deposit of $0.925 million toward the purchase price A loan of $570,000 to Mr Singh a young bachelor who purchased an apartment in Wollongong for $600.000. Mr Singh took out fenders mortgage insurance ("LMI") on the full value of the property. A loan to Bad Luck Brian, who borrowed 85% of his house's $900,000 purchase price and obtained fult Mi. Since taking possession of the house. Brian's house has been exposed to a toxic chemical leak. ANZ's independent valuer estimates this will cause Brian's house to fall in value by 95%. In addition, they estimate the property will not be able to be sold for 10 years. According to APRA's requirements of ANZ to meet "unquestionably strong" benchmark what is the minimum amount of CET1 capital required to support these 3 mortgages? a. $0.3288 million b. I am unable to answer this question and accept O marks. O c. 50.2284 million O d. 50.1356 million e. $0.3060 million f. 50.1617 million O g. 50.2470 million Oh $0.1921 million WN "LMI" Lenders Mortgage Insurance You have the following formation about some home loans that ANZ Bank issued recently A loan to Mr & Mrs Huang for buying a 6-bedroom house in Cotts Harbour at a purchase price of $3.7 million. They chose not to take out LMI, despite repeated suggestions from their loan officer. After much saving, they were able to put down a deposit of $0.925 million toward the purchase price A loan of $570,000 to Mr Singh a young bachelor who purchased an apartment in Wollongong for $600.000. Mr Singh took out fenders mortgage insurance ("LMI") on the full value of the property. A loan to Bad Luck Brian, who borrowed 85% of his house's $900,000 purchase price and obtained fult Mi. Since taking possession of the house. Brian's house has been exposed to a toxic chemical leak. ANZ's independent valuer estimates this will cause Brian's house to fall in value by 95%. In addition, they estimate the property will not be able to be sold for 10 years. According to APRA's requirements of ANZ to meet "unquestionably strong" benchmark what is the minimum amount of CET1 capital required to support these 3 mortgages? a. $0.3288 million b. I am unable to answer this question and accept O marks. O c. 50.2284 million O d. 50.1356 million e. $0.3060 million f. 50.1617 million O g. 50.2470 million Oh $0.1921 million

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