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Bank 5 Rate Sensative Fixed Rate Non Earning Assets Yield 600 8% 250 1196 150 096 Liabilities Rate 500 320 100 6% Equity 80 1000

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Bank 5 Rate Sensative Fixed Rate Non Earning Assets Yield 600 8% 250 1196 150 096 Liabilities Rate 500 320 100 6% Equity 80 1000 Total 1000 27. Calculate the Gap 28. Calculate Net Interest Income 29. Calculate Net Interest Margin 30. Recalculate Net Interest Income and Net Interest margin when interest rates decrease by 1 31. Discuss the relationship between the Gap and the change in net interest income when interest rates decreased. Why did Net Interest Margin increase or decrease

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