Union Bank has the following balance sheet (in millions of dollars):
|
Assets
|
|
Liabilities & Equity
|
|
|
Cash
|
$ 10
|
Retail deposits:
|
|
|
Reserves at Fed
|
$ 20
|
Stable
|
$ 230
|
|
Securities:
|
|
Less Stable
|
$344
|
|
T-bills
|
$ 120
|
Unsecured wholesale finding from
|
|
|
T-bonds
|
$ 150
|
Stable small business deposits
|
$276
|
|
GNMA securities
|
$ 200
|
Less stable small business deposits
|
$ 465
|
|
Corporate bonds
|
|
Nonfinancial corporates
|
$520
|
|
AA-rated corporations >1 yr_
|
$ 450
|
Accrued liabilites
|
$ 40
|
|
BB-rated corporations < 1 yr_
|
$ 300
|
|
$1,875
|
|
Mortgage loans (unemc-umbered)
|
$ 550
|
|
|
|
OREO
|
$ 72
|
EtflitY capital
|
$125
|
|
Premises
|
$ 128
|
|
|
|
|
$2,000
|
|
$2,000
|
Cash inflows over the next 30 days from the bank's performing assets = $43 million.
Calculate Union Banks's Liquidity Coverage Ratio and show whether or not the bank is in compliance with the regulation?
Calculate Union Banks's Net Stable Funding Ratio and show whether or not the bank is in compliance with the regulation?
Show work and round to three decimal places.