Question
Consider the following Balance Sheet for Forward Thinking Commercial Bank(FTCB) (in millions) ASSETS LIABILITIES Floating rate mortgages 250 Demand deposits 300 (currently 14% annually) (currently
Consider the following Balance Sheet for Forward Thinking Commercial Bank(FTCB) (in millions)
| ASSETS | LIABILITIES | |||
| Floating rate mortgages | 250 | Demand deposits | 300 | |
| (currently 14% annually) | (currently 5% annually) | |||
| 30 years fixed rate loans | 1 year CD | 50 | ||
| (currently 9% annually) | 120 | (currently 8% annually) | ||
| Equity | 20 | |||
| 370 | 370 |
c. What is FTCB expected net interest income at year end if interest rates grew by 300 basis points on assets, but decline by 2% on liabilities.
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Enhancing Financial Inclusion Through Islamic Finance Volume I
Authors: Abdelrahman Elzahi Saaid Ali , Khalifa Mohamed Ali , Muhammad Khaleequzzaman
1st Edition
3030399346,3030399354
