BB T Bank currently has the following interest sensitive assets and liabilities on its balance sheet with the interest rate sensitivity weights noted Interest Sensitive Assets $ Amount Rate Sensitivity Index Federal fund loans $ 50 00 1 00 Security holdings 50 00 1 20 Loans and leases 350 00 1 45 Interest Sensitive Liabilities $ Amount Rate Sensitivity Index Interest bearing deposits $ 250 00 0 75 Money market borrowings 90 00 0 95 What is the banks current interest sensitive gap Adjusting for these various interest rate sensitivity weights what is the banks weighted interest sensitive gap Suppose the federal funds interest rate increases or decreases 50 basis points How will the banks net interest income be affected ( a ) given its current balance sheet makeup and ( b ) reflecting its weighted balance sheet adjusted for the foregoing rate sensitivity indexes

Question

BB T Bank currently has the following interest sensitive assets and liabilities on its balance sheet with the interest rate sensitivity weights noted  Interest Sensitive Assets $ Amount Rate Sensitivity Index Federal fund loans $ 50 00 1 00 Security holdings 50 00 1 20 Loans and leases 350 00 1 45 Interest Sensitive Liabilities $ Amount Rate Sensitivity Index Interest bearing deposits $ 250 00 0 75 Money market borrowings 90 00 0 95 What is the banks current interest sensitive gap  Adjusting for these various interest rate sensitivity weights what is the banks weighted interest sensitive gap  Suppose the federal funds interest rate increases or decreases 50 basis points  How will the banks net interest income be affected ( a ) given its current balance sheet makeup and ( b ) reflecting its weighted balance sheet adjusted for the foregoing rate sensitivity indexes

Accepted Answer

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Interest-Sensitive Assets	$ Amount	Rate Sensitivity Index
Federal fund loans	$ 50.00	1.00
Security holdings	50.00	1.20
Loans and leases	350.00	1.45
Interest-Sensitive Liabilities	$ Amount	Rate Sensitivity Index
Interest-bearing deposits	$ 250.00	0.75
Money-market borrowings	90.00	0.95

Question

BB&T Bank currently has the following interest-sensitive assets and liabilities on its balance sheet with the interest-rate sensitivity weights noted. Interest-Sensitive Assets $ Amount Rate

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