Question
A thrift has a negative annual CGAP of $35 million. A credit union has an annual CGAP of +$8 million. The thrift has total assets
A thrift has a negative annual CGAP of $35 million. A credit union has an annual CGAP of +$8 million. The thrift has total assets of $500 million and the credit union has total assets of $40 million. Assuming a zero spread effect, if all interest rates decrease 35 basis points, what is the change in NII for the thrift? For the credit union?
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Step: 1
To calculate the change in Net Interest Income NII for both the thrift and the credit union after a decrease in interest rates of 35 basis points 035 ...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
