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Wales Bank - Summary Balance Sheet, m Interest Assets Yield Rates Liabilities Rate-sensitive 500 6.0% 600 2.0% Fixed-rate 350 9.0% 220 4.0% Non-earning/Non-paying 150 0.0%

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Wales Bank - Summary Balance Sheet, m Interest Assets Yield Rates Liabilities Rate-sensitive 500 6.0% 600 2.0% Fixed-rate 350 9.0% 220 4.0% Non-earning/Non-paying 150 0.0% 100 0.0% Total 920 Equity 80 Total 1.000 1,000 [ii] The Monetary Policy Committee at the Bank of England has raised interest rates by 0.5%. To determine interest rate risk, use GAP analysis to show the effect of the rise in rates on the profitability of Wales Bank. [5 marks] Wales Bank -Summary Balance Sheet, m Interest Costs Assets Yield Rates Liabilities Rate-sensitive 500 600 Fixed-rate 350 220 Non-earning/Non-paying 150 100 Total 920 Equity 80 Wales Bank - Summary Balance Sheet, m Interest Assets Yield Rates Liabilities Rate-sensitive 500 6.0% 600 2.0% Fixed-rate 350 9.0% 220 4.0% Non-earning/Non-paying 150 0.0% 100 0.0% Total 920 Equity 80 Total 1.000 1,000 [ii] The Monetary Policy Committee at the Bank of England has raised interest rates by 0.5%. To determine interest rate risk, use GAP analysis to show the effect of the rise in rates on the profitability of Wales Bank. [5 marks] Wales Bank -Summary Balance Sheet, m Interest Costs Assets Yield Rates Liabilities Rate-sensitive 500 600 Fixed-rate 350 220 Non-earning/Non-paying 150 100 Total 920 Equity 80

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