What happens to Badlands Bank (balance sheet below) if interest rates increase by 100 basis points? Assume
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What happens to Badlands Bank (balance sheet below) if interest rates increase by 100 basis points? Assume a rate sensitivity of 40% for relevant asset items, and of 90% for relevant liability items. That is, the 100 bps interest rate change will not translate into 100 bps rate changes on asset and liability items.
What can Badlands Bank do to navigate this situation?
Related Book For
Fundamentals of Investments, Valuation and Management
ISBN: 978-1259720697
8th edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
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