Question
ASSETS Amount ($M) Duration (Years) LIABILITIES Amount ($M) Duration (Years) Reserves 10 0 Checkable Deposits 10 2 Securities Money Market Deposits 5 0.1 <1 Year
| ASSETS | Amount ($M) | Duration (Years) |
| LIABILITIES | Amount ($M) | Duration (Years) |
| Reserves | 10 | 0 |
| Checkable Deposits | 10 | 2 |
| Securities |
|
|
| Money Market Deposits | 5 | 0.1 |
| <1 Year | 15 | 0.4 |
| Savings Account | 10 | 1.5 |
| >1 Year | 2 | 5 |
| Certificates of Deposits |
|
|
| Mortgages |
|
|
| Variable Rate | 10 | 0.5 |
| Variable Rate | 10 | 0.5 |
| <1 Year | 18 | 0.4 |
| Fixed Rate | 10 | 6 |
| >1 Year | 5 | 4 |
| Commercial Loans |
|
|
| Interbank Loans | 5 | 0 |
| <1 Year | 8 | 0.7 |
| Borrowings |
|
|
| >1 Year | 15 | 4 |
| <1 Year | 10 | 0.3 |
| Building etc. | 10 | 0 |
| >1 Year | 2 | 3 |
|
|
|
|
| Capital | 5 |
|
| Total | 80 |
|
| Total | 80 |
|
The balance sheet of XYZ bank. If interest rates decrease from 10% to 9%, what will: the change in net worth and the Capital of the bank be? You must show your calculation, otherwise, your mark will be deducted
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The Analysis And Use Of Financial Statements
Authors: Gerald I. White, Ashwinpaul C. Sondhi, Haim D. Fried
3rd Edition
0471375942, 978-0471375944
