Question

The Balance Sheet of Eastern Bank Ltd with its value ($m), liquid (%) and volatile (%) are provided below:

Assets	Value ($m)	Liquid (%)
Cash	10	40
Investments	50	90
Commercial Loans	50	-5
Consumer Loans	10	20
Other Assets	8	50
Total	128
Liabilities	Value ($m)	Volatile (%)
Corporate Deposits	20	70
Customer Deposits	60	30
Other Liabilities	35	80
Equity	13
Total	128

1. a) Calculate total amount of liquid assets and total amount of volatile liabilities.
   

2. b) Calculate Liquidity Surplus / Deficit.

3. c) How this Liquidity Surplus / Deficit should be managed from Asset and Liability sides respectively?

Answer 1

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