Two financial entities are confronting distinct funding difficulties. Bank A, a mid-sized regional bank, is concerned about meeting its legal reserve requirements on a daily basis and seeks alternative solutions to this challenge. On the other hand, Bank B, a small community bank, is experiencing an unexpectedly large shortfall in the renewal of its long-term certificates of deposit (CDs) due to increased competition for retail deposits in its local market. Historically, Bank B has relied on stable CDs to fund its home mortgage portfolio. Considering the timing and availability of non-deposit funds, what would be the most appropriate funding strategy for each of these organizations?
