Given the following information for AmBank, calculate its income statement (effective) GAP. How much will NII change

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Given the following information for AmBank, calculate its income statement (effective) GAP. How much will NII change if the prime rate rises 1 percent? The ECR reflects the relationship of each account's rate to the prime rate.

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Bank Management

ISBN: 978-1133494683

8th edition

Authors: Timothy W. Koch, S. Scott MacDonald

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Question Posted: Nov 03, 2015 05:55 AM

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Given the following information for AmBank, calculate its income statement (effective) GAP. How much will NII change

Question:

Income Statement GAP With Rising Rates 1-Year Balance Sheet GAP $55,120,000 $28,615,000 ECR 82% 67% Rate sensitive Assets Loans Securities Rate sensitive Liabilities MMDAS NoWs CDs 2$100,000 $41,640,000 $37,260,000 $20,975,000 34% 9096 85%

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EBank Income Statement Gap Loans 45198400 Securities 19172050 RSAs 643704...View the full answer

Bank Management

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