Question: Sparkle Savings Association has interest sensitive assets of 400 million interest sensitive
Sparkle Savings Association has interest-sensitive assets of $400 million, interest-sensitive liabilities of $325 million, and total assets of $500 million. What is the bank’s dollar interest-sensitive gap? What is Sparkle’s relative interest-sensitive gap? What is the value of its interest-sensitivity ratio? Is it asset sensitive or liability sensitive? Under what scenario for market interest rates will Sparkle experience a gain in net interest income? A loss in net interest income?
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