II$.$ Problems and Short Answers $(50$ points$)$

Problem #$1(16\mathrm{.}67$ points$)$

You are an examiner performing an audit of a bank. As part of CAMELS liquidity is an

important consideration. You were given the following information from your initial

requirements list. The bank is telling you that they do not have a liquidity problem, but you want

to assess this and ensure they are compliant, according to Basel III at the $100\%$ level, using the

Liquidity Coverage Ratio $($LCR$).$

Determine the LCR from this information.

Is the bank compliant

Average transactions over the past year $($in millions$)$

Balance Sheet as of December $31,2023($in millions$)$