18. WallsFarther Bank has the following balance sheet (in millions of dollars). Assets Cash Deposits at...

 

Transcribed Image Text:

18. WallsFarther Bank has the following balance sheet (in millions of dollars). Assets Cash Deposits at the Fed $12 Stable retail deposits 19 Less stable retail deposits Treasury securities 125 Unsecured wholesale funding from: Stable small business deposits GNMA securities 94 Loans to AA rated corporations 138 Less stable small business deposits Nonfinancial corporates Loans to BB rated corporations 106 Premises Total 20 Equity Liabilities and Equity $514 Total $ 55 20 80 49 250 60 $514 Cash inflows over the next 30 days from the bank's performing assets are $5.5 million. Calculate the LCR for WallsFarther Bank. 18. WallsFarther Bank has the following balance sheet (in millions of dollars). Assets Cash Deposits at the Fed $12 Stable retail deposits 19 Less stable retail deposits Treasury securities 125 Unsecured wholesale funding from: Stable small business deposits GNMA securities 94 Loans to AA rated corporations 138 Less stable small business deposits Nonfinancial corporates Loans to BB rated corporations 106 Premises Total 20 Equity Liabilities and Equity $514 Total $ 55 20 80 49 250 60 $514 Cash inflows over the next 30 days from the bank's performing assets are $5.5 million. Calculate the LCR for WallsFarther Bank.

Answer rating: 100% (QA)

The Liquidity Coverage Ratio LCR is calculated by dividing the HighQuality Li... View the full answer