Assume that the following banks have the same net amount of 2 million, but they are different due to the capital structure: [10 ABL Deposits Bank Capital Total Liabilities and Equity MCB Reserves Loan Total Assets 12 million 90 million 102 million 85 million 17 million 102 million Reserves Loan Total Assets 12 million 90 million 102 million Deposits Bank Capital Total Liabilities and Equity 100 million 02million million 102

Assume that the following banks have the same net amount of 2 million, but they are different due to the capital structure: [10 ABL Deposits Bank Capital Total Liabilities and Equity MCB Reserves Loan Total Assets 12 million 90 million 102 million 85 million 17 million 102 million Reserves Loan Total Assets 12 million 90 million 102 million Deposits Bank Capital Total Liabilities and Equity 100 million 02million million 102

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Do solve it asap Alpha Bank has the following assets (with Liquidity levels in the parentheses) on its balance sheet: Cash $35 A-rated Commercial Loans $120 (Level 2A) Residential mortgage-backed securities $50 (Level 2B) Alpha Bank's liabilities (with Run-off factors in the parentheses) are: Stable retail deposits $80 (3%) Less stable retail deposits 40 (10%) Unsecured wholesale funding 60 (100%) All numbers are in millions of dollars. Assume that a 15% haircut applies to Level 2A assets and a 50% haircut applies to level 2B assets. Assume further that the amount of Level 2 assets in the stock of HQLA is capped at ⅔ of the amount of Level 1 assets. Cash inflows over the next 30 days from the bank’s performing assets are $10 million. What is Kensington Bank’s Liquidity Coverage Ratio (LCR)?
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Use the Table below to answer this question (Table: Bank Balance Sheet) Based on the table, what is the leverage ratio at the bank? Bank Balance Sheet Assets Reserves $10,000 Deposits $100,000 Loans Securities 40,000 10 05 100,000 4.67 Liabilities & Net Worth Debt 20,000 Equity 30,000
Could someone answer both of the question as they are connected?
Bank two currently has $500 million in transaction deposits. The bank has $65 million in reserves. The and its Federal reserve requirement ratio is 12%. The bank's required reserves are excess reserves are A. $60 million; $0. B. $60 million; $5 million. C. $440 million; $5 million. D. $600 million; $60 million.