1. Consider the balance sheets of the following two (fictitious) banks:

Lion Bank

Assets ($m)	Liabilities ($m)
Loans 80	Deposits 90
Reserves 20	Capital 10
Total 100	Total 100

Goose Bank

Assets ($m)	Liabilities ($m)
Loans 95	Deposits 80
Reserves 5	Capital 20
Total 100	Total 100

Suppose that, as a result of adverse economic conditions, both of these banks experience loan losses of $10m and deposit outflows of $8m. Discuss the main risks facing each bank and the corrective actions they might need to take in this situation.