The following table shows an excerpt of statement of financial position of Bank ABC.

(a) Compute the changes in sources and uses of funds of Bank ABC in 2021.

(b) Identify and discuss the issues faced by Bank ABC in 2021 by using the computed values of sources and uses of funds in part (a).

Asset	2020	2021
	($m)	($m)
Cash and liquid assets	60	64
Trading securities	40	25
Investment securities	44	22
Net loans and leases	168	183
Fixed assets	44	42
Other assets	18	17

 

Liabilities and shareholders' equity	2020	2021
	($m)	($m)
Current deposits	104	101
Savings deposits	99	85
Time deposits	69	58
Ordinary shares	67	80
Retained profits	16	16
Reserves	19	19

Answer rating: 100% (QA)

a To compute the changes in sources and uses of funds of Bank ABC in 2021 we need to compare the total assets and total liabilities and equity between ... View the full answer