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5. Assume the following balance sheet for All Star Bank. What does the balance sheet look like if a customer decides to exercise a $15MM
5. Assume the following balance sheet for All Star Bank. What does the balance sheet look like if a customer decides to exercise a $15MM loan commitment if the bank meets the borrowing need A) by "buying" (borrowing) liquidity and B) by using internal funds? Assets S30 Base Case Liabilities and Equity Deposits S110 Borrowed Funds S40 Equity S20 Total Liab & Equity $170 Loans 590 Securities S50 $170 Total Cash Loans Securities Total Scenario A-Bank Buys Liquidity Assets Liabilities and Equity Deposits Borrowed Funds Equity Total Liab & Equity Scenario B-Bank Uses Internal Funds Assets Liabilities and Equity | Deposits Borrowed Funds Equity Total Liab & Equity Cash Loans Securities Total
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