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Suppose our bank has $456 million in assets and bank capital is $58 million. Furthermore, 25% of bank's asset are rate-sensitive, while 44% of its
Suppose our bank has $456 million in assets and bank capital is $58 million. Furthermore, 25% of bank's asset are rate-sensitive, while 44% of its liabilities are rate-sensitive. Conduct basic gap analysis to determine what happens to bank's income when interest rate declines by 1.5%.
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