liquidity reserve : ‫احتياطي السيولة‬
minimum cash requirement must held in the bank
the base for liquidity reserve :
1-credit current accounts
2-debit current account temporarily credit
3-saving accounts
4-term deposits less than 1 month
5-cds or bills
6-10% of unused credit line
$
jd
nis
All currencies
Nablus
2%
2%
2%
4%
Jeneen
2%
2%
2%
4%
All branches
3%
3%
3%
6%
assume that on 1-5-2020 the amounts as the following
Branch Nablus
Branch Jeneen
$
JD
NIS
$
JD
Current accounts
100
100
100
100
100
Debit current accounts (used CL)
200
100
50
50
100
Current accounts temporarily debit
50
50
0
50
100
Current accounts temporarily credit
50
0
0
0
50
Saving accounts
150
200
100
250
100
Term deposits less than 1 month
100
150
100
100
150
Term deposits more than 1 month
200
300
0
300
100
Un used credit line
300
300
0
200
300
CDs and bills
100
0
0
0
0
10% UNUSED CREDIT LINE
30
30
0
20
30
Total to be used in liquidity reserve
530
480
300
470
430
2%
10.6
9.6
6
9.4
8.6
1-what is the minimum cash requirement that must held in branch Nablus in $ ANSWER $10.6
2- what is the minimum cash requirement that must held in branch JENEEN in $ ANSWER $9.4
3- what is the minimum cash requirement that must held in branch JENEEN in JD ANSWER 8.6
NIS
100
100
0
0
50
100
0
100
0
10
260
5.2
4- what is the minimum cash requirement that must held in the bank in $ ANSWER
if branch nablus held only 10.6 and branch jeneen held only 9.4
10.6+9.4=20 20 not equal 3% but equal 2% then 3%= $30
if branch Nablus $21.6 and branch Jennen$ 8.4
5- what is the minimum cash requirement that must held in the bank in NIS ANSWER
6+5.2+5.6=16.8
N=11.6 J=5.2
N=6 J=10.8
N=9 J=7.8
6- what is the minimum cash requirement that must held in the bank in JD ANSWER
N= 9.6
n=18
J=8.6 any branch must held or both an additional amount 9.1
j=9.3
at minimum
assume that each 1JD=5NIS and each 1$=4NIS (EXCHANGE RATES) EXCHANGE RATE BETWEEN $ AND
JD
EACH 1$ = 4/5 JD
EACH 1JD =5/4 $
7- what is the minimum cash requirement that must held in branch Nablus
$ =10.6
JD=9.6
NIS=6
$=21.2
JD=19.2
NIS=12
$=10.6
JD=9.6
NIS=6+6+(9.6*5)+(10.6*4)=102.4
8- what is the minimum cash requirement that must held in branch Nablus IF SHORTAGE OF THE
BRANCH HELD IN $
JD=9.6
NIS=6
$=10.6 +10.6 + (9.6*5/4)+(6/4)=34.7
$
jd
nis
All currencies
Nablus
2%
2%
2%
4%
Current accounts
Debit current accounts (used CL)
Current accounts temporarily debit
Current accounts temporarily credit
Saving accounts
Term deposits less than 1 month
Term deposits more than 1 month
Un used credit line
CDs and bills
10% UNUSED CREDIT LINE
Total to be used in liquidity reserve
2%
Jeneen
All branches
2%
3%
2%
3%
2%
3%
4%
6%
Branch Nablus
$
JD
NIS
100
100
100
200
100
50
50
50
0
50
0
0
150
200
100
100
150
100
200
300
0
300
300
0
100
0
0
30
30
0
530
480
300
10.6
9.6
6
$
100
50
50
0
250
100
300
200
0
20
470
9.4
Branch Jeneen
JD
100
100
100
50
100
150
100
300
0
30
430
8.6
NIS
100
100
0
0
50
100
0
100
0
10
260
5.2
9-what is the minimum cash in $ that must held in branch Nablus if shortage of $ held in branch nablus ,
and shortage of the branch held in $
1-10.6 +5.3+4.7=20.6
2-10.6 +10.6 +(9.6*5/4)+(6/4)=34.7
10.6+10.6+12+1.5=34.7
the answer will be 34.7
10-what is the minimum cash in JD that must held in branch Jeneen if shortage of JD held in branch
jeneen ,and shortage of branch Jeneen held in JD
1-8.6+4.3+4.8=17.7
2-8.6+8.6+(9.4*4/5)+(5.2/5)=
8.6+8.6+7.52+1.04=25.02
THE ANSWER 25.02
11-what is the minimum cash in JD that must held in branch Jeneen if shortage of JD held in branch
NABLUS ,and shortage of branch Jeneen held in JD
1-8.6
2-8.6+8.6+(9.4*4/5)+(5.2/5)=25.02
THE ANSWER WILL BE 25.02
12-what is the minimum cash in JD that must held in branch Jeneen if shortage of JD held in branch
jeneen ,and shortage of branch Jeneen held in $
1-8.6+4.3+4.8=17.7
2-8.6
THE ANSWE WILL BE 17.7