RM'million
50,200
6,700
32,000
4,500
28,000
15,000
a) Consider the following cash flow for a bank.
Items
Deposit from customer
Repayments of borrowings
Customer loan repayments
Bonds, Sukuk and other borrowings
Loan, advances and financing to customer
Deposit withdrawals
Using the information above, answer the following questions:
i) Calculate the net liquidity amount of a bank.
(5 marks)
ii) Based on the net liquidity amount calculated in (i), what should the bank do?
(3 marks)
b) Explain how the following factors affect bank's decision in investment securities.
i) Credit risk
ii) Liquidity risk
iii) Call risk
(4 marks)
(4 marks)
(4 marks)