Question 3 Dr Daniel is the firm's risk manager. In March 2023, the collapse of Silicon Valley Bank raised fears of a new financial crisis, like in 2008. Daniel asks you

to weigh the risk of Singapore institutions failing because of a bank run. He shares the below graph, summarising the balance sheet structure of a typical Singaporean bank. Liabilities and Equity Equity Others Debt securities Customer deposits Bank deposits 8% 6% 9% 73% Assets 7% 60% 7% 10% 16% Others Loans to customers Loans to banks Other securities Central banks and governments (a) Infer from this balance sheet graph five (5) sources of liquidity strength available to a Singaporean bank facing a bank run scenario. Your answer should not exceed two hundred (200) words (including any cited reference). (15 marks) (b) Discuss in less than two hundred (200) words (including any cited reference), whether the 'Central banks and governments' asset balances pose a greater liquidity risk for a Singaporean bank than 'Other securities'. (5 marks) Daniel presents you with a list of five (5) banking assets. He asks you to rank them in descending order of liquidity and match them with the correct maturity range. The information is summarized in/nthe table below but is left Unsorted on purpose. Assets Revolver loan to a SME Residential mortgage loan Power plant project financing Acquisition bridge loan Credit card advance Maturity ranking Average Short Likeliest maturity range 15-40 years 7-12 years 6 months-2 years Longest Shortest Long (c) Re-arrange the table so that the five (5) assets are correctly ranked according to their maturity ranking from the shortest to the longest and adequately matched with the corresponding maturity range. (10 marks) 3-18 months 1-3 months