Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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%

Treasury bonds

145

Level 1

CDs maturing in 6 months

100

0%

Qualifying marketable securities

50

Level 1

Unsecured wholesale funding from:

GNMA bonds

60

Level 2A

Stable small business deposits

125

5%

Loans to AA- corporations

540

Level 2A

Less stable small business deposits

100

10%

Mortgages

285

Nonfinancial corporates

450

75%

Premises

40

Equity

130

Total

$1,165

Total

$1,165

Cash inflows over the next 30 days from the banks performing assets are $7.5 million.

Calculate the LCR for Central Bank.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Finance

Authors: Brian Watts

8th Edition

0712110720, 978-0712110723

More Books

Students also viewed these Finance questions

Question

Calculate the ES, EF, LS, LF for an example network.

Answered: 1 week ago

Question

Compare different frameworks for HRD evaluation

Answered: 1 week ago