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A bank has the following balance sheet: Assets Avg.Rate Liabilities/Equity Avg.Rate Rate sensitive $550,000 7.75% Rate sensitive $375,000 6.25% Fixed rate 755,000 8.75 Fixed rate

A bank has the following balance sheet:

Assets Avg.Rate Liabilities/Equity Avg.Rate

Rate sensitive $550,000 7.75% Rate sensitive $375,000 6.25%

Fixed rate 755,000 8.75 Fixed rate 805,000 7.50

Nonearning 265,000 Nonpaying 390,000

Total $1570000 Total $1570000

Explain how the CGAP and spread effects influenced the change in net interest

income.

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