Question
Central Bank has the following balance sheet (in millions of dollars). Assets Liquidity Level Liabilities and Equity Run-off factor Cash $ 15 Level 1 Stable
Central Bank has the following balance sheet (in millions of dollars).
Assets | Liquidity Level | Liabilities and Equity | Run-off factor | |||||
Cash | $ 15 | Level 1 | Stable retail deposits | $ 190 | 3% |
| ||
Deposits at the Fed | 30 | Level 1 | Less stable retail deposits | 70 | 10% |
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Treasury bonds | 145 | Level 1 | CDs maturing in 6 months | 100 | 0% |
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Qualifying marketable securities | 50 | Level 1 | Unsecured wholesale funding from: |
| ||||
GNMA bonds | 60 | Level 2A | Stable small business deposits | 125 | 5% |
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Loans to AA- corporations | 540 | Level 2A | Less stable small business deposits | 100 | 10% |
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Mortgages | 285 | Nonfinancial corporates | 450 | 75% |
| |||
Premises | 40 | Equity | 130 |
| ||||
Total | $1,165 | Total | $1,165 |
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Cash inflows over the next 30 days from the banks performing assets are $7.5 million.
Calculate the LCR for Central Bank.
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