FORMULAS: Net Interest Margin = (Interest revenues -- Interest expenses)/Assets Gap-Rate sensitive assets - Rate sensitive liabilities Gap Ratio=(Rate sensitive assets/Rate sensitive liabilities) ROA - (Net profit after taxes)/Assets ROE - (Net profit after taxes)Equity; ROE - ROA x leverage measure [(Net income)/Equity capital] - [(Net income) Total assets] x [Total assets/Equity capital] DURGAP= DURAS - (DURLIABX (LIAB/AS)] *** A bank that relies on short-term deposits, and expects consistently decreasing interest rates, should allocate most of its funds to loans and securities with rates in order to increase overall profitability. long-term; fixed short-term, variable short-term fixed long-term: variable