Class_Assignment_3 - FIN3117 Bank Management AY 2009-2010...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
FIN3117 Bank Management NUS Business School AY 2009-2010 Nan Li Class Assignment 3 Due on Friday, April 23 1. Integrated Mini Case: Measuring Liquidity Risk A DI has the following balance sheet (in millions). Assets Liabilities and Equity Cash $9 Deposits $75 Loans 95 Purchased funds 40 Securities 26 Equity 15 Total assets $130 Total Liabilities and Equity $130 The DI’s securities portfolio includes $16 million in T-bills and $10 million in GNMA securities. The DI has a $20 million line of credit to borrow in the repo market and $5 million in excess cash reserves (above reserve requirements) with the Fed. The DI currently has borrowed $22 million in Fed funds and $18 million from the Fed discount window to meet seasonal demands. 1) What is the DI’s total available (sources of) liquidity? 2) What is the DI’s current total uses of liquidity? 3) What is the net liquidity of the DI? 4) Calculate the financing gap. 5)
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/19/2010 for the course FINANCE fin3117 taught by Professor Nanli during the Spring '10 term at National University of Juridical Sciences.

Page1 / 2

Class_Assignment_3 - FIN3117 Bank Management AY 2009-2010...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online