You are a regulatory risk analyst at a commercial bank. Based on the provided balance sheet, risk-weighted assets (RWA), and Tier 1/Tier 2 capital details, calculate the bank’s capital adequacy ratios according to Basel III standards.
Your output should include:
- Common Equity Tier 1 (CET1), Tier 1, and Total Capital Ratios.
- An evaluation of compliance status (Compliant / Non-Compliant).
- Recommendations for corrective action if any ratio falls below regulatory thresholds.
Ensure your calculation methodology aligns with Basel III requirements.
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