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The Balance Sheet of Eastern Bank Ltd with its value ($m), liquid (%) and volatile (%) are provided below: Assets Value ($m) Liquid (%) Cash

The Balance Sheet of Eastern Bank Ltd with its value ($m), liquid (%) and volatile (%) are provided below:

Assets

Value ($m)

Liquid (%)

Cash

10

40

Investments

50

90

Commercial Loans

50

-5

Consumer Loans

10

20

Other Assets

8

50

Total

128

Liabilities

Value ($m)

Volatile (%)

Corporate Deposits

20

70

Customer Deposits

60

30

Other Liabilities

35

80

Equity

13

Total

128

  1. a) Calculate total amount of liquid assets and total amount of volatile liabilities.

  2. b) Calculate Liquidity Surplus / Deficit.

  3. c) How this Liquidity Surplus / Deficit should be managed from Asset and Liability sides respectively?

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