Question
You are given the following data on United Commercial Bank Ltd. Rate sensitive assets that includes $5M of securities with maturities less than a year,
You are given the following data on United Commercial Bank Ltd. Rate sensitive assets that includes $5M of securities with maturities less than a year, $50M of consumer loans with maturities less than a year and $10M of variable rate commercial loans with maturities of more than 5 years. Rate sensitive liabilities includes $40M of commercial Paper, $13M of bank loans both of which have maturities of less than a year and $17m of variable rate short-term deposits. Calculate GAP for this bank and If interest rate rises by 1%, how much of this banks income will go up or down?
Its URGENT
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started