User Account

All Pages

What is kensington bank liquidity coverage ratio or lcr

Assignment Help Financial Accounting
Reference no: EM132974168

Alpha Bank has the following assets (with Liquidity levels in the parentheses) on its balance sheet:

Cash $35
A-rated Commercial Loans $120 (Level 2A)
Residential mortgage-backed securities $50 (Level 2B)

Alpha Bank's liabilities (with Run-off factors in the parentheses) are:

Stable retail deposits $80 (3%)
Less stable retail deposits 40 (10%)
Unsecured wholesale funding 60 (100%)
All numbers are in millions of dollars.

Assume that a 15% haircut applies to Level 2A assets and a 50% haircut applies to level 2B assets. Assume further that the amount of Level 2 assets in the stock of HQLA is capped at ? of the amount of Level 1 assets. Cash inflows over the next 30 days from the bank's performing assets are $10 million.

Problem 1: What is Kensington Bank's Liquidity Coverage Ratio (LCR)?

Reference no: EM132974168

Questions Cloud

Explain why communication is so important in management : Explain why communication is so important in management.
What is porter five forces : What is Porter's Five Forces. Critically evaluate and discuss which other model or framework could be associated to Porter's Five Forces to overcome its limitat
Management information system : Which database architecture you will suggest to use in management Information system and How it works/suits best for educational organization, justify?
List and explain the elements of an assurance engagement : Discuss why auditors and accountants are engaged in assurance engagements other than financial statement audits - What is forensic auditing
What is kensington bank liquidity coverage ratio or lcr : Assume further that the amount of Level 2 assets in the stock of HQLA is capped at ?. What is Kensington Bank's Liquidity Coverage Ratio (LCR)?
How transaction affect the company financial statements : Florida Company placed $145 of raw materials into production. How would this transaction affect the company's financial statements
What is the minimum amount of capital for quokkas bank : The mortgage has a risk weight of 41%. What is the minimum amount of capital required on the mortgage in order for the institution to be adequately capitalized?
Understand the flow of information : Why is it important to understand the flow of information into and across Electronic Health Records (EHRs)?
Calculation of cost of capital for the company : The relevant corporate tax rate is 30%. Explain the three steps involved in the calculation of cost of capital for the company

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd