Answer the following questions below:
a. What is the bank's total available (sources of) liquidity? (2 marks) b. What is the bank's current total uses of liquidity? (2 marks) c. What is the net liquidity of your chosen commercial bank? (2 marks) d. Calculate the financing gap. (2 marks) e. What is the financing requirement? (2 marks) f. The bank expects a net deposit drain of $20 million. Show the bank's balance sheet if the following conditions occur: i. The bank purchases liabilities to offset this expected drain. (5 marks) ii. The stored liquidity management method is used to meet the expected drain (the bank does not want the cash balance to fall below $5 million, and securities can be sold at their fair value)
Note : use this balance sheet below to answer the questions above
BRED BANK (FIJI) PTE LTD KEY DISCLOSURE STATEMENT for the financial year ended 31st December 2021 Statement of comprehensive income The statement of comprehensive income for BRED Bank (Fiji) Pte Ltd as prepared under the IFRSs should be reported here and should include, but should not be limited to, the followina: Banking Operations in Fiji: - Total impaired assets (o - Total impaired assets (on-and off-balance sheet) ( $000 - Total impaired assets as a percentage of total - Total individually assessed provisions ($000) - Total provisions as a percentage of total ir Global Consolidated Operations: - Total impaired assets : - Total collectively assessed provisions (\$'000) - Total provisions as a percentage of total impaired assets NA-Not Applicable the following: - BRED Banque Populaire's most recent global balance sheet and profit and loss CashandliquidassetsBalancewiththeReserveBankofFijiReceivablesduefromotherfinancialinstitutionsSecuritiesheldLoans(includingadvancestocustomersandsimilarfacilities)ProvisionforimpairmentFixedassetsOtherassetsTotalAssets(5,000)22,165108,711129,76337,167735,477(13,241)11,11516,9241,048,081(5,000)16,14465,51195,31217,281475,410(8,035)9,24711,710682,580 statements and other publicly available discl - The Bank has presented its Financial Statements in accordance with International Requirements. Where necessary, figures have been adjusted to conform to changes the current year. Independent Audit Report Independent Auditor's Report shall state: (a) that the Key Disclosure Statement has been examined by the auditor; (b) that the Key Disclosure Statement has been completed in accordance witem Whether the information contained has been properly taken; and (c) the nature of the examination conducted and whether a qualified or unqualified opinion has been given in respect of the information. BRED BANK (FIJI) PTE LTD KEY DISCLOSURE STATEMENT for the financial year ended 31st December 2021 Statement of comprehensive income The statement of comprehensive income for BRED Bank (Fiji) Pte Ltd as prepared under the IFRSs should be reported here and should include, but should not be limited to, the followina: Banking Operations in Fiji: - Total impaired assets (o - Total impaired assets (on-and off-balance sheet) ( $000 - Total impaired assets as a percentage of total - Total individually assessed provisions ($000) - Total provisions as a percentage of total ir Global Consolidated Operations: - Total impaired assets : - Total collectively assessed provisions (\$'000) - Total provisions as a percentage of total impaired assets NA-Not Applicable the following: - BRED Banque Populaire's most recent global balance sheet and profit and loss CashandliquidassetsBalancewiththeReserveBankofFijiReceivablesduefromotherfinancialinstitutionsSecuritiesheldLoans(includingadvancestocustomersandsimilarfacilities)ProvisionforimpairmentFixedassetsOtherassetsTotalAssets(5,000)22,165108,711129,76337,167735,477(13,241)11,11516,9241,048,081(5,000)16,14465,51195,31217,281475,410(8,035)9,24711,710682,580 statements and other publicly available discl - The Bank has presented its Financial Statements in accordance with International Requirements. Where necessary, figures have been adjusted to conform to changes the current year. Independent Audit Report Independent Auditor's Report shall state: (a) that the Key Disclosure Statement has been examined by the auditor; (b) that the Key Disclosure Statement has been completed in accordance witem Whether the information contained has been properly taken; and (c) the nature of the examination conducted and whether a qualified or unqualified opinion has been given in respect of the information
