A thrift has a negative annual CGAP of $35 million. A credit union has an annual CGAP of +$8 million. The thrift has total assets of $500 million and the credit union has total assets of $40 million. Assuming a zero spread effect, if all interest rates decrease 35 basis points, what is the change in NII for the thrift? For the credit union?

Answer rating: 100% (QA)

To calculate the change in Net Interest Income NII for both the thrift and the credit union after a decrease in interest rates of 35 basis points 035 ... View the full answer