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Question 3: The balance sheet of Bank A on December 31, 2023 is as follows (Unit: Million VND): Amount LIABILITY & EQUITY Deposits from
Question 3: The balance sheet of Bank A on December 31, 2023 is as follows (Unit: Million VND): Amount LIABILITY & EQUITY Deposits from enterprises Savings ASSET Cash 1.056 Deposit at the central bank 2.253 Deposit at other banks 440 Loans for customers 23.303 Securities Other assets Total 7.612 199 34.863 Certificates of deposit Loans to other banks Equity Amount 6.487 14.799 10.598 133 2.846 Total 34.863 Required: Analyze the profit/loss implications of the interest rate risk when: 1) market interest rates increase by 0,5%. 2) input interest rates decrease by 0,5% and output interest rates decrease by 0,6%. Given: Short-term securities comprise 40% of the total portfolio; 40% of loans for customers will mature in the short term; 60% of deposits from enterprises are short-term; 40% of savings are short-term; 50% of deposits at other banks are short-term; 40% of certificates of deposit are short-term; and deposits at the central bank are not sensitive to interest rates.
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