The past 5 years balance sheet of NAB Assets: Reserves Securities Loans 2022 56.46B 146.1B 822.3B 2021
Question:
The past 5 years balance sheet of NAB
Assets:
Reserves | Securities | Loans | |
2022 | 56.46B | 146.1B | 822.3B |
2021 | 50.83B | 122.63B | 728.7B |
2020 | 64.39B | 144.34B | 634.84B |
2019 | 55.46B | 149.27B | 619.88B |
2018 | 50.19B | 134.83B | 598.55B |
Liabilities:
Borrowings | Capital | Demand Deposits (CD) | Savings and time deposits (S & T) | Other Liabilities | |
2022 | 290.64B | 59.03B | 410.64B | 206.07B | 86.66B |
2021 | 276.41B | 62.78B | 391.76B | 156.01B | 36.14B |
2020 | 257.02B | 61.29B | 333.48B | 170.31B | 40.62B |
2019 | 273.68B | 55.6B | 264.23B | 201.25B | 48.85B |
2018 | 264.94B | 52.71B | 245.81B | 207.13B | 33.73B |
[1] Note that (in the format we are using in class) the asset side has Reserves, Securities, Loans, and Other Assets, whereas the liabilities side has Demand Deposits (CD), Savings and Time Deposits (S & T), Borrowing (B), and Other Liabilities (liabilities that cannot be classified anywhere else are lumped together here). The Net Worth or Equity is labelled as Capital in that format.
[2] Once, you have converted the balance sheets in the desired format, you may notice that total assets may differ somewhat from total liabilities plus capital. This is due to the fact the numbers in the MarketWatch data are not perfectly accurate, but this inaccuracy does not matter for the analysis here.
Q2 By using the correctly formatted balance sheets prepared in Q1, for each of the 5 years, calculate the value of the money multiplier, m (use c=0.3). Assuming that NAB's multiplier is representative of the aggregate Australian banking sector, comment on the significance of this multiplier for the Australian economy. What happens in the banking sector (once it reaches equilibrium) if RBA decides to inject $100 M in reserves? Show via a T-Account entry.
FIX THIS - for me i believe all of this question is wrong please help. Please ensure you do every part of this question for Q2 :)
The Money Multiplier, m:
Year 2022:
Year 2021:
Year 2020:
Year 2019:
Year 2018:
Fundamentals Of Corporate Finance
ISBN: 9780135811603
5th Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford