1. You are given the following information about the Stern Koala Bear (SKB). Using the tables provided, complete the table and calculate Available Stable Funding (ASF), Required Stable Funding (RSF) and the Net Stable Funding Ratio (NSFR)

Assets	$m	RSF Factor	RSF-factor weighted
Balance with Reserve Bank	$30.00	0%	$0.00
Bank bills (CLF Eligible)	$50.00	10%	$5.00
Federal Government Securities (<1 year)	$300.00	5%	$15.00
Banking Software	$500.00	100%	$500.00
High risk mortgages	$1,200.00	100%	$1,200.00
Office building	$300.00	100%	$300.00
Personal loans (>1 year)	$500.00	100%	$500.00
Total	$2,880.00		$2,520.00
Liabilities + Equity	Amount	ASF Factor	ASF-factor weighted
Demand deposits (stable)	$700.00	90%	$630.00
Demand deposits (less stable)	$600.00	80%	$480.00
Retail term deposits (<1 year)	$300.00	90%	$270.00
Retail term deposits (> 1year)	$80.00	100%	$80.00
Corporate deposits	$600.00	50%	$300.00
Financial institutions' deposits	$400.00	0%	$0.00
Ordinary Equity	$200.00	100%	$200.00
Total	$2,880.00		$1,960.00
NSFR	=	ASF/RSF	78%

2. You have a position in ANZ bank worth $2m. The volatility of ANZ is 1.5% per day. Calculate the VaR based on a 10 day holding period and a 99% confidence interval. What does this number tell you?