Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2. WallsFarther Bank has the following balance sheet (in millions of dollars). Run-off factor $ 55 20 3% 10 Assets Cash Deposits at the FED

image text in transcribed

2. WallsFarther Bank has the following balance sheet (in millions of dollars). Run-off factor $ 55 20 3% 10 Assets Cash Deposits at the FED Treasury securities GNMA securities Loans to AA rated corporations Loans to BB rated corporations Premises Total Liquidity level $ 12 Level 1 19 Level 1 125 Level 1 94 Level 2A 138 Level 2A 106 Level 2B 20 $ 514 Liabilities and Equity Stable retail deposits Less stable retail deposits Unsecured wholesale funding from: Stable small business deposits Less Stable small business deposits Nonfinancial corporates Equity Total 80 49 250 60 $ 514 5 10 75 Cash inflows over the next 30 days from the bank's performing assets are $5.5 million. Calculate the LCR for WallsFarther Bank. Is the bank in compliance with liquidity requirements based on the LCR? 2. WallsFarther Bank has the following balance sheet (in millions of dollars). Run-off factor $ 55 20 3% 10 Assets Cash Deposits at the FED Treasury securities GNMA securities Loans to AA rated corporations Loans to BB rated corporations Premises Total Liquidity level $ 12 Level 1 19 Level 1 125 Level 1 94 Level 2A 138 Level 2A 106 Level 2B 20 $ 514 Liabilities and Equity Stable retail deposits Less stable retail deposits Unsecured wholesale funding from: Stable small business deposits Less Stable small business deposits Nonfinancial corporates Equity Total 80 49 250 60 $ 514 5 10 75 Cash inflows over the next 30 days from the bank's performing assets are $5.5 million. Calculate the LCR for WallsFarther Bank. Is the bank in compliance with liquidity requirements based on the LCR

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Handbook Of Research Methods And Applications In Empirical Finance

Authors: Adrian R. Bell, Chris Brooks, Marcel Prokopczuk

1st Edition

1782540172, 978-1782540175

More Books

Students also viewed these Finance questions