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The following partially completed table shows the interrelationship between GAP, interest rates and changes in net interest income (NII) RSA=RSL RSA>RSL RSA
The following partially completed table shows the interrelationship between GAP, interest rates and changes in net interest income (NII)
RSA=RSL RSA>RSL RSA | GAP (positive, negative or nil) | Interest change (decrease or increase) | Net interest income (decrease, decrease or none) |
RSA(A) | (B) | (Increase) | |
(C) | Nil | Decrease | (D) |
RSA>RSL | (E) | Increase | (F) |
(G) | Negative | (H) | (Decrease) |
RSA=RSL | (I) | (J) | (none) |
(K) | Positive | Decrease | (L) |
Where RSA is interest rate sensitive assets and RSL is interest rate sensitive liabilities.
You are required to provide the outstanding information by copying the table and completing it. (6)
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