the bank has rate-sensitive assets of $10 million and rate-sensitive liabilities of $12 million. What is its $GAP? Will the bank’s net interest income/margin go up or down if interest rates go up? (2.00 points)

5. Suppose a bank has an RSA of $150m and RSL of $140m. If interest rates rise by 1 percent on RSAs and by 1.2 percent on RSLs, what would be the expected annual change in net interest income (ΔNII) based on $GAP? Show your work. 

Answer rating: 100% (QA)

4 dollar gap Rate sensitive assets rate sensitive liabilities 10 12 2million If the i... View the full answer