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please i need to answer the following question please ASAP In the situation of classic deposit and loan banking, the bank's equity will engage on

please i need to answer the following question please ASAP image text in transcribed
In the situation of classic deposit and loan banking, the bank's equity will engage on loans and investment in securities. In classical banking, deposit and credit determine as the opportunities for the development of lending. If a commercial bank operating in classical deposit and credit banking model also develops investment banking activities, then the risk management process should include quantification of risks related to bank's involvement in investment activities such as investment in securities, derivatives investment and other assets that generate with high credit risk. Thus, investment banking should have appropriately higher specific provision to cover high levels of estimated risk in order to reduce the likelihood of loss liquidity and announcements bankrupt in downturn situation in the domestic economy and markets where the bank's contractors and clients operate. Required: Discuss what happens if deposit and credit bank becomes involve in investment banking activities based on

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