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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 (%) 40
The Balance Sheet of Eastern Bank Ltd with its value ($m), liquid (%) and volatile (%) are provided below: Assets Value ($m) Liquid (%) 40 Cash 10 Investments 50 90 50 -5 Commercial Loans Consumer Loans 10 20 Other Assets 8 50 Total Liabilities 128 Value ($m) 20 Volatile (%) 70 60 30 Corporate Deposits Customer Deposits Other Liabilities Equity Total 35 80 13 128 a) Calculate total amount of liquid assets and total amount of volatile liabilities. (5 marks) b) Calculate Liquidity Surplus / Deficit. (5 marks) c) How this Liquidity Surplus / Deficit should be managed from Asset and Liability sides respectively
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