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A bank has the following balance sheet: ASSETS: RETURN. MILLION $ Cash 0.00% $ 35 Investments ( < 1 Year) 4.00%. $ 200 Short Term
A bank has the following balance sheet:
ASSETS: RETURN. MILLION $
Cash 0.00% $ 35
Investments (< 1 Year) 4.00%. $ 200
Short Term Loans (<1 Year). 6.00%. $ 225
Long Term Fixed Rate Loans 6.75%. $ 250
TOTAL $ 710
LIABILITIES AND EQUITY COST. MILLIONS $
Fixed Rate Deposits. 3.50% $ 240
Rate Sensitive Deposits. 2.00% $ 260
Fed Fund Borrowings. 2.50% $ 25
Long Term Borrowings at Fixed Rate (Maturity< 1 Year). 5.50%. $ 119
Equity. $ 66
TOTAL $ 710
WHAT IS THE BANKS ONE YEAR REPRICING GAP?
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