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A bank has the following balance sheet. What is the gap? (Rate sensitive assets - rate sensitive liabilities) Assets Amount (in millions) Liabilities Amount (in
A bank has the following balance sheet. What is the gap? (Rate sensitive assets - rate sensitive liabilities)
Assets | Amount (in millions) | Liabilities | Amount (in millions) | |
///////////////////////////// | ////////////////// | //////////////////// | /////////////////// | |
Required Reserves | $1,100.00 | Checking Accounts | $1,000.00 | |
Floating-rate Personal Loans | $2,000.00 | NOW accounts | $1,750.00 | |
Floating-rate Mortgages | $1,000.00 | MMDAs | $4,150.00 | |
Fixed Rate Mortgages | $1,208.00 | Long Term CD's | $950.00 | |
Short-term Treasury securities | $1,500.00 | Short-term CDs | $1,500.00 | |
Fixed Rate Personal Loans | $800.00 | Long Term Bonds issued by the Bank | $500.00 | |
Long term Treasuries | $750.00 | Short Term Notes issued by the Bank | $450.00 | |
Bank Building | $100.00 | Total Liabilities | $10,300.00 | |
Excess Reserves | $600.00 | Capital | ///////////////////// | |
Floating Rate Commercial Loans | $2,000.00 | Bank Stock | $1,000.00 | |
Fixed Rate Commercial Loans | $900.00 | Retained Earnings | $658.00 | |
Total Assets | $11,958.00 | Total Liabilities and Capital | $11,958.00 |
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