Physics · Banking Operations and Asset Liability Management

Consider the following statements regarding 'Branch Profitability and Bank Regulatory Frameworks': Statement 1: The 'Profitability of a Branch' is fundamentally different from its 'Liquidity' because a branch can face a liquidity crisis if its deposits are short-term and its loans are long-term, requiring internal support. Statement 2: In the regulatory framework, the 'Provisioning Coverage Ratio' (PCR) is maintained at a minimum benchmark of 70 percent at the bank level. Statement 3: Inter-branch transactions, such as a customer of Branch A withdrawing cash at an ATM belonging to Branch B, incur a switch fee which should be accounted for between branches to reflect the true cost of service. Statement 4: The 'Break-even Point' for a new bank branch in a semi-urban area is typically and reliably achieved within 6 months, regardless of growth rate in CASA. Statement 5: Depreciation on the branch building and computers is an allocated cost that should never be factored into any long-term organizational profitability analysis. Which of the following combinations represents the set of INCORRECT statements?