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. You are promoted to a management position at the Bank of Huxley (with the support of Friar Dom, of course). The bank has $15
. You are promoted to a management position at the Bank of Huxley (with the support of Friar Dom, of course). The bank has $15 million of fixed-rate assets, $30 million of rate-sensitive assets, $25 million of fixed-rate liabilities, and $20 million of rate-sensitive liabilities. Conduct a basic gap analysis for the bank and show what will happen to bank profits if interest rates rise by 200 basis points.
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