Question 4 Using the following FIs Balance sheet determine what is the impact on the...
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Accounting
Question 4
Using the following FIs Balance sheet determine what is the impact on the balance sheet if its largest customer decides to exercise a AUD 40 million loan commitment
Balance Sheet
Assets ( $ millions)
Liabilities and equity ($millions)
Cash
40
Deposits
130
Loans
120
Borrowed funds
60
Securities
90
Equity
60
Total assets
250
Total liabilities and equity
250
Show the new balance sheet values for both of these cases:
(i) asset (stored) liquidity management
ii) liability (purchased) liquidity management ( 10 marks )
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