Question

how to calculate cumulative repricing gap

how to calculate cumulative repricing gap

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Repeicing gap is the difference between the assets and liabilities whose interest rates will change over a period of time.

The cumulative repricing gap is the sum of all the changes in betwee the rate sensitive assets and the rate sensitive liabilities.

The calculation can be done by first finding out the changes in the value of the asset and liability based on the change in interest rate. The repricing gap is thus identified. The sum of these gaps will be the cumulative repricing gap.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Calculate the repricing gap and impact on net interest income of a 1 percent increase in...
Calculate the repricing gap and impact on net interest income of a 1 percent increase in interest rates for the following positions: a. Rate-sensitive assets = $124 million; Rate-sensitive liabilities = $62 million. b. Rate-sensitive assets = $62 million; Rate-sensitive liabilities = $174 million. c. Rate-sensitive assets = $89 million; Rate-sensitive liabilities = $82 million. (For all requirements, negative amounts should be indicated by a minus sign. Enter your answers in millions rounded to 2 decimal places. (e.g., 32.16)) Repricing...
After an internal audit, your bank has determined that it has a negative repricing gap. What...
After an internal audit, your bank has determined that it has a negative repricing gap. What sort of risk are you concerned about, and how can you remediate it? a. Underwriting risk; tighten credit requirements. b. Liquidity risk; enter the repo market. c. Currency risk; arrange a currency swap. Interest rate risk; arrange an interest rate swap. Off-Balance Sheet Risk; arrange swaps swaptions or forwards at the time the loan commitment is made.
Hi how do we calculate the cash flow gap - I need the formula? br
Hi how do we calculate the cash flow gap - I need the formula? br
Does anyone know how to calculate the expected cumulative relative frequency? I would appreciate you write...
Does anyone know how to calculate the expected cumulative relative frequency? I would appreciate you write the formula in here.
How identified gap in a research?
How identified gap in a research?
Calculate percentage cumulative frequencies for the mothers' weight data shown and draw the percentage cumulative frequency...
Calculate percentage cumulative frequencies for the mothers' weight data shown and draw the percentage cumulative frequency curve. Half of the mothers weighed what weight (or more)? Note: If you are drawing this by hand, you should plot each cumulative frequency value against the lower boundary of its corresponding group. To plot the origin point, you have to imagine a fictitious group below your lowest group, whose cumulative frequency is 0. The largest (uppermost) cumulative frequency value should be plotted against...
Calculate the ''In'' composition for the alloy InGaN which have a band gap needed to produce...
Calculate the ''In'' composition for the alloy InGaN which have a band gap needed to produce blue light and red light emission (ignore quantum or strain effects). Band gap: InN:0.7ev ; GaN:3.4ev
Calculate the ''In'' composition for the alloy InGaN which have a band gap needed to produce...
Calculate the ''In'' composition for the alloy InGaN which have a band gap needed to produce blue light and red light emission (ignore quantum or strain effects). Band gap: InN:0.7ev ; GaN:3.4ev
How are cumulative frequencies and percentiles different? How are they the same?
How are cumulative frequencies and percentiles different? How are they the same?
How are cumulative frequencies and percentiles different? How are they the same?
How are cumulative frequencies and percentiles different? How are they the same?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT