A large Bank Holding Company has Tier-1 capital of $40 billion and Tier-2 capital of $20 billion and risk weighted assets of $550 billion.

Solve the following problem

A large Bank Holding Company has Tier-1 capital of $40 billion and Tier-2 capital of $20 billion and risk weighted assets of $550 billion.

Calculate the risk based capital ratios and determine whether they meet the required standards.

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