Dr Gollum is the firm's risk manager. In March 2023, the collapse of Silicon Valley Bank...

  

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Dr Gollum is the firm's risk manager. In March 2023, the collapse of Silicon Valley Bank raised fears of a new financial crisis, like in 2008. Gollum asks you to weigh the risk of Singapore institutions failing because of a bank run. He shares the below graph, summarising the balance sheet structure of a typical Singaporean bank. Equity Others Debt securities Liabilities and Equity Customer deposits Bank deposits 8% 6% 9% 73% Assets 60% 7% 10% 16% Others Loans to customers Loans to banks Other securities Central banks and governments Dr Gollum is the firm's risk manager. In March 2023, the collapse of Silicon Valley Bank raised fears of a new financial crisis, like in 2008. Gollum asks you to weigh the risk of Singapore institutions failing because of a bank run. He shares the below graph, summarising the balance sheet structure of a typical Singaporean bank. Equity Others Debt securities Liabilities and Equity Customer deposits Bank deposits 8% 6% 9% 73% Assets 60% 7% 10% 16% Others Loans to customers Loans to banks Other securities Central banks and governments

Answer rating: 100% (QA)

a Five sources of liquidity strength available to a Singaporean bank facing a bank run scenario can be inferred from the provided balance sheet graph Customer deposits Customer deposits are a signific... View the full answer