Calculate the amount of cet1

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An Australian bank, subject to APRA capital regulation, has Risk-Weighted Assets (RWA) of $100,000 and total assets of $150,000. The bank's regulatory capital is shown in the table below.

Common Equity Tier 1 (CET1)

$7,000

Additional Tier I

$500

Tier II

$2,000

a. Check whether all Basel III minimum capital requirements are met.

b. Calculate the amount of CET1 that remains free after meeting the minimum requirements. Explain if the regulatory buffer(s) requirements are met and if any restrictions will apply, as a result

Reference no: EM133064300

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