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In 2022 interest rate hikes has occured rapidly in a short period of time introduce a significant threat to commercials bank industry worldwide. Bank A
In 2022 interest rate hikes has occured rapidly in a short period of time introduce a significant threat to commercials bank industry worldwide. Bank A is a typical commercials bank and holds the assest with the average druration of 5 years (assests=$1000 milion). On the other hand the duration of its liabilities is 2 years. Equity os 10 of its total financing. Current interest rate is 4% but us projected to continued in increasing by another 200 basis
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