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Question 4 Using the following FIs Balance sheet determine what is the impact on the balance sheet if its largest customer decides to exercise a
Question 4
Using the following FIs Balance sheet determine what is the impact on the balance sheet if its largest customer decides to exercise a AUD 40 million loan commitment
Balance Sheet |
|
|
|
Assets ( $ millions) |
| Liabilities and equity ($millions) |
|
Cash | 40 | Deposits | 130 |
Loans | 120 | Borrowed funds | 60 |
Securities | 90 | Equity | 60 |
Total assets | 250 | Total liabilities and equity | 250 |
Show the new balance sheet values for both of these cases:
(i) asset (stored) liquidity management
ii) liability (purchased) liquidity management ( 10 marks )
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