A bank has the following balance sheet (values in millions of pounds): Cash 5 Treasury Bonds (>1year) 5 Retail deposits (stable) Retail deposits (less stable) Wholesale deposits Corporate Bonds Rated AA (>1year) 5 Mortgages 15 Preferred Stock (>1 year) Small business loans 55 Tier 2 Capital Fixed assets 15 Tier 1 Capital TOTAL 100 TOTAL a) Calculate the bank's NSFR and state whether or not is meets the NSFR requirement. (5 marks) 25 |15-45|5|5|5 100 b) Calculate the value of additional Tier 1 Capital needed to meet the NSFR assuming that the additional capital will be held in cash. (5 marks) c) Repeat part b) above assuming that the additional capital will be used to fund Mortgage products instead of being held in cash. (5 marks) A bank has the following balance sheet (values in millions of pounds): Cash 5 Treasury Bonds (>1year) 5 Retail deposits (stable) Retail deposits (less stable) Wholesale deposits Corporate Bonds Rated AA (>1year) 5 Mortgages 15 Preferred Stock (>1 year) Small business loans 55 Tier 2 Capital Fixed assets 15 Tier 1 Capital TOTAL 100 TOTAL a) Calculate the bank's NSFR and state whether or not is meets the NSFR requirement. (5 marks) 25 |15-45|5|5|5 100 b) Calculate the value of additional Tier 1 Capital needed to meet the NSFR assuming that the additional capital will be held in cash. (5 marks) c) Repeat part b) above assuming that the additional capital will be used to fund Mortgage products instead of being held in cash