Question
If a bank has $20 million of fixed rate assets, $30million of rate-sensitive assets, $35 million of fixed-rate liabilities, and $40 million of rate-sensitive liabilities;
If a bank has $20 million of fixed rate assets, $30million of rate-sensitive assets, $35 million of fixed-rate liabilities, and $40 million of rate-sensitive liabilities; conduct a gap analysis to determine how the banks profits would change if interest rates increase by 100 basis points (one percent). Show your work.
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Financial Institutions Management A Risk Management Approach
Authors: Anthony Saunders, Marcia Cornett, Otgo Erhemjamts
10th Edition
1260013820, 978-1260013825
