(a) Tipple Bank has the following balance sheet as at 31 May 2023. Provide a critique...
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(a) Tipple Bank has the following balance sheet as at 31 May 2023. Provide a critique of Tipple Bank's asset liability management from a risk perspective. (4 marks) Assets $ millions $ millions Cash reserves 10.50 Liabilities Demand deposits Capital Fixed rate long-term mortgages 100.00 (>20 years) 110.50 106.00 4.50 110.50 (b) Propose solutions that Tipple Bank can adopt to manage the risks that you have indicated in (a) above. Be sure to explain the benefits of your recommendations. (4) marks) (a) Tipple Bank has the following balance sheet as at 31 May 2023. Provide a critique of Tipple Bank's asset liability management from a risk perspective. (4 marks) Assets $ millions $ millions Cash reserves 10.50 Liabilities Demand deposits Capital Fixed rate long-term mortgages 100.00 (>20 years) 110.50 106.00 4.50 110.50 (b) Propose solutions that Tipple Bank can adopt to manage the risks that you have indicated in (a) above. Be sure to explain the benefits of your recommendations. (4) marks)
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Answer rating: 100% (QA)
a Critique of Tipple Banks asset liability management from a risk perspective 1 Lack of Diversification The majority of Tipple Banks assets are concentrated in fixedrate longterm mortgages 20 years Th... View the full answer
Related Book For
International Financial Reporting and Analysis
ISBN: 978-1408075012
5th edition
Authors: David Alexander, Anne Britton, Ann Jorissen
Posted Date:
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