Question

Use the following balance sheet information for Metro Bank (MB) for the next three questions:

Assets	$ in million	RSF %	Liability and equity	$ in million	ASF
cash	400	0%	deposits	2,700	70%
loans	3,000	75%	borrowings	800	30%
securities	600	25%	equity	500	100%
total	4,000		total	4000

What is the amount of available stable funding of MB?

		$2,200m
		$2,400m
		$2,550m
		$2,630m
		$2,750m

What is the amount of required stable funding of MB?

		$2,200m
		$2,400m
		$2,550m
		$2,630m
		$2,750m

1 points

Question 84

What is the net stable funding ratio of MB?

		80%
		95%
		105%
		110%
		120%

Answer 1

Available stable funding = 0.7*deposits + 0.3*borrowings+1*equity

Available stable funding = 0.7*2700+0.3*800+1*500

Available stable funding = $2630m

Required stable funding = 0*cash + 0.75*loan + 0.25* securities

Required stable funding = 0*400 + 0.75*3000 + 0.25*600

Required stable funding = $2400m

Net stable funding = (Available stable funding/Required stable funding)*100 %

Net stable funding = (2630/2400)*100 %

Net stable funding ratio = 109.58%

Net stable funding ratio = 110%