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c. Assume that West Coast Bank wants to be prepared for an increase in commercial loan demand of 1 percent and an increase in consumer
c. Assume that West Coast Bank wants to be prepared for an increase in commercial loan demand of 1 percent and an increase in consumer loan demand of 2 percent during the next 2 months. Using the data in part a, recalculate the bank's liquidity surplus or deficit under these assumptions. Assets Total (mils.) Liquid (%) Cash $ 266.25 Loans: Commercial 1,002.27 Consumer 539.68 Investments 1,317.45 Other Assets 217.15 Total $ 3,342.80 Volatile (%) Funding Sources Deposits $2,228.38 Other Liabs. 855.79 10% 75% WoW 258.63 0% Equity Total $ 3,342.80 c. Assume that West Coast Bank wants to be prepared for an increase in commercial loan demand of 1 percent and an increase in consumer loan demand of 2 percent during the next 2 months. Using the data in part a, recalculate the bank's liquidity surplus or deficit under these assumptions. Assets Total (mils.) Liquid (%) Cash $ 266.25 Loans: Commercial 1,002.27 Consumer 539.68 Investments 1,317.45 Other Assets 217.15 Total $ 3,342.80 Volatile (%) Funding Sources Deposits $2,228.38 Other Liabs. 855.79 10% 75% WoW 258.63 0% Equity Total $ 3,342.80
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