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PLEASE HELP ........................... ITS URGENT ........................ (b) MMB Bank's Management team has decided to holda 58 percent reserve of hot money deposits, 36 percent reserve
PLEASE HELP ........................... ITS URGENT ........................
(b) MMB Bank's Management team has decided to holda 58 percent reserve of hot money deposits, 36 percent reserve of vulnerable deposits and a 6 percent reserve of core funds. The estimated reserve requirements on majority deposits are 1.75 percent, except for savings deposits cany a zero percent reserve requirement and all checkable deposits above RM100 million carry a 4.8 percent reserve requirement. MMB Bank currently has total loans outstanding of RM5,391 million, which half month ago were as high as RM5,017 million Given the MMB bank's loans average amual growth rate of 5 percent, estimate the total liquidity requirement (both low and high estimate) for current month. Source Saving deposit (RM million) Checkable deposit (RM million) 333 456 1,888 Hot money fund Vulnerable fund Stable fund 0 Nonpersonal time deposit (RM million) 1,478 1,345 246 (15 marks) [Total: 30 marks] 123 789 (b) MMB Bank's Management team has decided to holda 58 percent reserve of hot money deposits, 36 percent reserve of vulnerable deposits and a 6 percent reserve of core funds. The estimated reserve requirements on majority deposits are 1.75 percent, except for savings deposits cany a zero percent reserve requirement and all checkable deposits above RM100 million carry a 4.8 percent reserve requirement. MMB Bank currently has total loans outstanding of RM5,391 million, which half month ago were as high as RM5,017 million Given the MMB bank's loans average amual growth rate of 5 percent, estimate the total liquidity requirement (both low and high estimate) for current month. Source Saving deposit (RM million) Checkable deposit (RM million) 333 456 1,888 Hot money fund Vulnerable fund Stable fund 0 Nonpersonal time deposit (RM million) 1,478 1,345 246 (15 marks) [Total: 30 marks] 123 789Step by Step Solution
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