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Required 1. What is the cumulative repricing gap if the planning period is (a) 6 months (b) 2 year (2 2 marks) sensitive assets is
Required 1. What is the cumulative repricing gap if the planning period is (a) 6 months (b) 2 year (2 2 marks) sensitive assets is forecasted to decrease by 60 basis points and rate-sensitive liabilities to (4 marks) 2. What will happen to the net interest income of the bank, if interest on the banks rate increase 25 basis points in 6 months' time? 3. Due to the uncertainty in the economy, based on the bank's estimate there is a potential of decrease in the demand deposits. What are some of the impact may that have on the (4 marks) bank's overall asset-liability? Does the bank have sufficient liquid capital to cushion any unexpected losses as per the Basle Ill requirement? (ignore cyclical buffer requirement) 4. (8 marks) Required 1. What is the cumulative repricing gap if the planning period is (a) 6 months (b) 2 year (2 2 marks) sensitive assets is forecasted to decrease by 60 basis points and rate-sensitive liabilities to (4 marks) 2. What will happen to the net interest income of the bank, if interest on the banks rate increase 25 basis points in 6 months' time? 3. Due to the uncertainty in the economy, based on the bank's estimate there is a potential of decrease in the demand deposits. What are some of the impact may that have on the (4 marks) bank's overall asset-liability? Does the bank have sufficient liquid capital to cushion any unexpected losses as per the Basle Ill requirement? (ignore cyclical buffer requirement) 4. (8 marks)
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