QUESTION 1 a. Define bank liquidity risk. Clearly explain the sources of bank liquidity risk. Illustrate your explanation with examples. (5 marks) b. Define bank asset liquidity and liability liquidity. Clearly explain and demonstrate how asset liquidity and liability liquidity are different in their balance sheet implications. (6 marks) QUESTION 2 a. Provide three graphs for (1) Customer loans/Customer deposits, (2) Liquid assets/ Deposits and shortterm funding, and (3) Basel liquidity coverage ratio for the four major Australian banks from 2013 to 2017. (9 marks) b. Interpret the liquidity risk of these banks. Yo
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