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12) Town Bank has the following balance sheet (in millions of dollars): $210 115 100 Run-off Factor 3% 10% 0% Assets Cash Central bank reserve
12) Town Bank has the following balance sheet (in millions of dollars): $210 115 100 Run-off Factor 3% 10% 0% Assets Cash Central bank reserve Treasury securities GNMA securities Bonds of AAA-rated corporations Bonds of BBB-rated corporations Mortgages Premises Total Liabilities and Equity $20 Stable retail deposits 40 Less stable retail deposits 45 CDs maturing in 6 months 50 Unsecured wholesale funding from: 130 Stable small business deposits 120 Less stable small business deposits 80 Nonfinancial corporates 220 Equity 705 Total 60 40 60 120 5% 10% 75% 705 Cash inflows over the next 30 days from the bank's performing assets are $5.5 million. Calculate the Liquidity Coverage Ratio for Town Bank
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