Question

Assume a bank has the following balance sheet for the 3-year GAP=$?   (Hint: only rate sensitive...

  1. Assume a bank has the following balance sheet

    for the 3-year GAP=$?   (Hint: only rate sensitive assets and rate sensitive liabilities count)

    Asset

    Potential rate change

    Amount

    Liability

    Potential Rate change

    Amount

    Reserves at the Fed

    N/A

    $200

    90-day CDs

    0.85%

    $200

    6-month T-Bills

    2.00%

    $400

    360-day CDs

    1.00%

    $300

    3-year Consumer loans

    3.00%

    $600

    Time Deposits 2- year

    1.50%

    $1200

    10-year mortgages

    2.00%

    $800

    Stockholder’

    s equity

    N/A

    $200

    Total

    $2000

    Total

    $2000

    -300

    -400

    -500

    -600

    -700

    800

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