My bank's end-of-year dollar data for 2006 and 2019:
2006 2019
Total Assets: $217,802,326 $486,004,220
Cash: $8,644,951 $22,256,667
Securities: $39,699,269 $120,982,766
Deposits: $135,903,121 $374,303,872
Equity Capital: $20,618,125 $49,392,503
Liquid Assets Ratio: 0.22 0.29
Deposits Ratio: 0.62 0.77
Bank Capital Ratio: 0.09 0.10
Briefly explain the connection between each of these three ratios and bank liquidity risk and/or insolvency risk. For example, you may want to explain what would happen to the related risk(s) as the given ratio increases and why. Was this bank better or worse prepared for the 2020 COVID-19 shock as compared with the 2007-2009 episode of the Great Financial Crisis? Explain.