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Central Bank has the following balance sheet. Assets ($millions) 1-year consumer loan 3-month treasury bills 6-month liquidity loan 10-year fixed rate commercial and industrial loan
Central Bank has the following balance sheet. Assets ($millions) 1-year consumer loan 3-month treasury bills 6-month liquidity loan 10-year fixed rate commercial and industrial loan Total 75 60 70 130 Answer: Liabilities ($millions) Demand deposit 1-year time deposit 6-month commercial paper Equity Capital 20 135 150 30 335 335 Assume that Demand deposit does not pay any interest. Further assume that the annual payment from 10-year commercial and industry loan will be $8 million over the next one year, out of which $6 million will be principal payment and $2 million will be interest payment. What is the bank's one-year repricing gap in millions? (i.e. if the answer is $11 million, enter 11, if the answer is -$11 million, enter -11)
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