MMB Bank's Management team has decided to holda 58 percent reserve of hot money deposits, 36...
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MMB Bank's Management team has decided to holda 58 percent reserve of hot money deposits, 36 percent reserve of vulnerable deposits and a 6 percent reserve of core funds. The estimated reserve requirements on majority deposits are 1.75 percent, except for savings deposits cany a zero percent reserve requirement and all checkable deposits above RM100 million cany a 4.8 percent reserve requirement. MMB Bank curently has total loans outstanding of RM5,391 million, which half mpnth ago were as high as RM5,017 million. Given the MMB bank's loans average annual growth rate of 5 percent, estimate the total liquidity requirement (both low and high estimate) for cument month. Checkable deposit (RM million) Saving deposit (RM million) Nonpersonal time deposit (RM million) Source Hot money fund Vulnerable fund 1,478 1,345 333 456 123 Stable fund 1,888 789 246 MMB Bank's Management team has decided to holda 58 percent reserve of hot money deposits, 36 percent reserve of vulnerable deposits and a 6 percent reserve of core funds. The estimated reserve requirements on majority deposits are 1.75 percent, except for savings deposits cany a zero percent reserve requirement and all checkable deposits above RM100 million cany a 4.8 percent reserve requirement. MMB Bank curently has total loans outstanding of RM5,391 million, which half mpnth ago were as high as RM5,017 million. Given the MMB bank's loans average annual growth rate of 5 percent, estimate the total liquidity requirement (both low and high estimate) for cument month. Checkable deposit (RM million) Saving deposit (RM million) Nonpersonal time deposit (RM million) Source Hot money fund Vulnerable fund 1,478 1,345 333 456 123 Stable fund 1,888 789 246
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Low estimate Hot money fund 175 x 333 456 117 Vulnerable fund 175 x 1345 14... View the full answer
Related Book For
Fundamental Accounting Principles Volume II
ISBN: 978-1259066511
14th Canadian Edition
Authors: Larson Kermit, Jensen Tilly
Posted Date:
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