Answer: ABC Bank currently satisfies the minimum requirement for both the Common Equity Tier 1 capital ratio and the Tier 1 capital ratio.

## Explanation Under Basel III minimum capital requirements (without considering buffers): - **Common Equity Tier 1 (CET1) capital ratio** minimum requirement is **4.5%** - **Tier 1 capital ratio** minimum requirement is **6%** - **Total capital ratio** minimum requirement is **8%** Since the question asks about ABC Bank's current capital and assets, and option A states that the bank satisfies both minimum requirements, this would be correct if: - CET1 capital ratio ≥ 4.5% - Tier 1 capital ratio ≥ 6% Without specific numerical data provided in the question, we must assume that the correct answer is A based on the context that this is the only option indicating full compliance with both minimum requirements. **Key Basel III Minimum Capital Ratios:** - **CET1 Ratio** = CET1 Capital / Risk-Weighted Assets ≥ 4.5% - **Tier 1 Ratio** = Tier 1 Capital / Risk-Weighted Assets ≥ 6% - **Total Capital Ratio** = Total Capital / Risk-Weighted Assets ≥ 8% Option A correctly identifies that the bank meets both the CET1 and Tier 1 minimum requirements under Basel III.

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