Question: Section A: Introduction (2.5 marks) Briefly explain a background of the bank you have chosen and discuss the liquidity status of the bank before and



Section A: Introduction (2.5 marks) Briefly explain a background of the bank you have chosen and discuss the liquidity status of the bank before and after the COVID19 pandemic. Section B: Analysis and Results (20 marks) f. The bank expects a net deposit drain of $20 million. Show the bank's balance sheet if the following conditions occur: i. The bank purchases liabilities to offset this expected drain. (5 marks) ii. The stored liquidity management method is used to meet the expected drain (the bank does not want the cash balance to fall below $5 million, and securities can be sold at their fair value). (5 marks) Section C: Conclusions (2.5 marks) You need to draw together all the main points you have made in the body of your assignment. Do not add anything that was not discussed in the body. Spend time in this section as I will grade you according to the understanding of the questions and how you have calculated it. Review Topic: Measuring Liquidity in Fiji's Commercial Banks. Requirements: 1. Choose one a balance sheet from any of the commercial banks URL links uploaded on the My Assessment tab. 2. Analyze the balance sheet and discuss the questions below: a. Identify and calculate the bank's total available (sources of) liquidity? b. Identify and calculate the bank's current total uses of liquidity? c. Calculate the net liquidity of the bank? d. Calculate the financing gap. e. Calculate the financing requirement? f. The bank expects a net deposit drain of $20 million. Show the bank's balance sheet if the following conditions occur: a. The bank purchases liabilities to offset this expected drain. b. The stored liquidity management method is used to meet the expected drain (the bank does not want the cash balance to fall below $5 million, and securities can be sold at their fair value). Section A: Introduction (2.5 marks) Briefly explain a background of the bank you have chosen and discuss the liquidity status of the bank before and after the COVID19 pandemic. Section A: Introduction (2.5 marks) Briefly explain a background of the bank you have chosen and discuss the liquidity status of the bank before and after the COVID19 pandemic. Section B: Analysis and Results (20 marks) f. The bank expects a net deposit drain of $20 million. Show the bank's balance sheet if the following conditions occur: i. The bank purchases liabilities to offset this expected drain. (5 marks) ii. The stored liquidity management method is used to meet the expected drain (the bank does not want the cash balance to fall below $5 million, and securities can be sold at their fair value). (5 marks) Section C: Conclusions (2.5 marks) You need to draw together all the main points you have made in the body of your assignment. Do not add anything that was not discussed in the body. Spend time in this section as I will grade you according to the understanding of the questions and how you have calculated it. Review Topic: Measuring Liquidity in Fiji's Commercial Banks. Requirements: 1. Choose one a balance sheet from any of the commercial banks URL links uploaded on the My Assessment tab. 2. Analyze the balance sheet and discuss the questions below: a. Identify and calculate the bank's total available (sources of) liquidity? b. Identify and calculate the bank's current total uses of liquidity? c. Calculate the net liquidity of the bank? d. Calculate the financing gap. e. Calculate the financing requirement? f. The bank expects a net deposit drain of $20 million. Show the bank's balance sheet if the following conditions occur: a. The bank purchases liabilities to offset this expected drain. b. The stored liquidity management method is used to meet the expected drain (the bank does not want the cash balance to fall below $5 million, and securities can be sold at their fair value). Section A: Introduction (2.5 marks) Briefly explain a background of the bank you have chosen and discuss the liquidity status of the bank before and after the COVID19 pandemic
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