You are given the following bank balance sheet. If the risk-weighted minimum capital adequacy ratio is 10%, does this bank meet that standard? Write a short memo and show your work. Submit as a word document.
[Assets]
Treasury Bills $100m
Secured Real Estate Loans $400m
Unsecured Consumer Loans $300m
Past Due Loans $50m
[Liabilities and Equity]
Deposits $750
Equity $100
[Capital Adequacy Risk Weights]
Treasury Bills 0%
Secured Real Estate Loans 50%
Unsecured Consumer Loans 100%
Past Due Loans 150%