Bank Analysis School eBook

Investment Decisions Scenario 3: A large depositor just placed a significant deposit at your bank and intends to withdraw the full amount in 1-2 years for an upcoming project. Senior management has directed the Investment Committee (your table) to purchase a safe and highly liquid investment to ensure the funds are available when needed. Which investment option do you choose?

Investment Decisions

Scenario 4: Your bank has strong liquidity, but the Net Interest Margin is low. Senior management has directed you to purchase a high-yielding investment to improve earnings. Which investment option due you choose?