Use the following information about the bank capital of a typical commercial bank and answer the required below. Figures are in million. Equity share capital (paid up) 2,000 Share premium 1,400…

Use the following information about the bank capital of a typical commercial bank and answer the required below. Figures are in million. Equity share capital (paid up) 2,000 Share premium 1,400 Undivided or retained earnings 600 Subordinated term debt 450 General loan loss provision 750 Assets revaluation reserve 70 Statutory general reserves 900 Capital redemption reserve 525 Exchange equalization reserve 75 Investment adjustment reserve 71 Capital adjustment reserve 22 Intangible assets 40 Investment in equity of institutions with financial interest 85 a. Compute the common equity tier I capital. b. Compute the total capital of the bank. c. Does this bank hold adequate enough capital, if the risk weighted exposure of this commercial bank is Rs 70,250 million? Why?