commercial banking

QUESTION 3b [ 7 marks) A financial institution has the following balance: Assets Cash Government securities Other Assets Total Balance Sheet (in million) Liabilities 18 Deposits 18 Borrowed Funds 164 Equity 200 Total 140 20 40 200 In 2020 COVID-19 increased the liquidity needs of a bank servicing the affected community as depositors withdrew deposits to the value of $40 million. Withdrawal of Deposits Assets Liabilities Cash Deposits Government securities Borrowed Funds Other Assets Equity Total Total Would you recommend this bank rely more on asset liquidity or liability liquidity to meet these additional requirements? Give reasons. Show how you would manage the bank's liquidity position. What other information that the financial institution would possess would improve your decision. Be specific