Question
Part 2. Managing interest rate risk: Maturity Gap analysis and Duration Gap analysis. (A) Use the balance sheet shown below for United First Bank (UFB)
Part 2. Managing interest rate risk: Maturity Gap analysis and Duration Gap analysis. (A) Use the balance sheet shown below for United First Bank (UFB) to answer the following questions:
Balance Sheet of United First Bank as of December 31, 2016 (thousands of dollars) | ||||
Assets | Liabilities & Capital | |||
Required reserves | $90 |
| Demand deposits | $35 |
Federal funds sold | $30 | NOW accounts | $210 | |
90-day T-bills | $75 | MMDAs | $340 | |
180-day T-notes | $120 | 3-month CDs | $250 | |
5-year T-bonds | $480 | 5-year CDs | $795 | |
Fixed-rate consumer loans | $150 | 6-month commercial paper | $40 | |
Floating-rate commercial loans | $170 | Fixed-rate bonds | $430 | |
Fixed-rate commercial loans | $325 | Equity capital | $900 | |
Floating-rate mortgages | $125 | Total Liabilities & Capital | $3,000 | |
Fixed-rate mortgages | $735 |
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Other fixed assets | $700 |
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Total Assets | $3,000 |
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2. Identify by name the individual rate-sensitive liabilities (RSLs) for UFB. What is the total dollar amount for the RSLs?
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