I PESTE Concept Check Question and Problem - Chapter 11 Question (25%) Liquidity management is a key objective of financial firms as well as corporations. As a newly appointed CFO of a major bank you are concerned with the factors/forces that make you bank prone to liquidity management issues. What are some of these forces? What would be some guidelines that you may want to set up to address the liquidity issues Problem (25%) Using the following financial information for WPU National Bank, calculate as many of the liquidity indicators discussed in this chapter for Wilson as you can. Do you detect any significant liquidity trends? Which trends should management investigate? Most Recent Year Previous Year Assets: Cash and due from When finished, make sure to click Submit imalater or click Cancel to quit without saving changes. WPUNJWPLUNCI Pull Up Assignment work.. LIPI Most Recent Year Previous Year $ 345,000 176,000 339,000 287,000 $358,000 178,000 343,000 223,000 Assets: Cash and due from depository institutions U.S. Treasury securities Other securities Pledged securities Federal funds sold and reverse repurchase agreements Loans and leases net Total Assets Liabilities: Demand deposits Savings deposits Time deposits Total deposits Core deposits Brokered deposits Federal funds 175,000 2,148,000 3,500,000 131,000 1,948,000 3,250,000 600,000 730,000 1,100,000 2,430,000 850,000 58,000 556,000 721,000 853,000 2,130,000 644,000 37,000 Liabilities: Demand deposits Savings deposits Time deposits Total deposits Core deposits Brokered deposits Federal funds purchased and repurchase agreements Other money market borrowings 600,000 730,000 1,100,000 2,430,000 850,000 58,000 556,000 721,000 853,000 2,130,000 644,000 37,000 217,000 237,000 25,000 16,000