Question
Asset Commonwealth Bank ANZ Bank NAB Bank Average Amount (m) % Amount (m) % Amount (m) % Amount (m) % Cash 42,814 4.47% 68,048 7.58%
Asset | Commonwealth Bank | ANZ Bank | NAB Bank | Average | ||||
| Amount (m) | % | Amount (m) | % | Amount (m) | % | Amount (m) | % |
Cash | 42,814 | 4.47% | 68,048 | 7.58% | 42,152 | 5.18% | 51,004.67 | 5.73% |
Interbank loans | 8,678 | 0.91% | 5,504 | 0.61% | 35,030 | 4.30% | 16,404.00 | 1.84% |
Trade securities | 31,127 | 3.25% | 43,605 | 4.86% | 45,637 | 5.60% | 40,123.00 | 4.51% |
Investment securities | 79,019 | 8.24% | 69,384 | 7.73% | 42,029 | 5.16% | 63,477.33 | 7.13% |
Loans | 647,503 | 67.53% | 574,331 | 64.00% | 468,277 | 57.49% | 563,370.33 | 63.28% |
Other assets | 148,711 | 15.61% | 136,454 | 15.21% | 181,391 | 22.27% | 155,852.00 | 17.51% |
Total assets | 958,852 | 100% | 897,326 | 100% | 814,516 | 100% | 890,231.33 | 100% |
Provide a word discussion and explanation of the following assets in the balance sheet of a bank:
1. Cash
a) The purpose and importance of the type of asset;
b) The monetary size of the asset compared to the total assets of banks and reasons for the average size of the type of asset;
c) The risks that the bank run due to holding the type of asset;
d) Methods/instruments that banks use to hedge the risks pertaining to this type of asset;
e) The income generated from the type of asset compared to the income generated from other type of assets;
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