After a protracted period of historically low interest rates in the wake of the financial crisis, many

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After a protracted period of historically low interest rates in the wake of the financial crisis, many observers predicted that the Federal Reserve would follow its December 2015 rate tightening with a series of further interest rate increases. Based on gap analysis, would this scenario be more likely to hurt or help your bank’s profitability, assuming your bank’s liabilities are more interest sensitive than its assets? What steps might your bank take to prepare for this scenario?

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Money Banking and Financial Markets

ISBN: 978-1259746741

5th edition

Authors: Stephen Cecchetti, Kermit Schoenholtz

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