The First National Bank of Dogsville finds that its asset and liability portfolio contains the following distribution of maturities and repricing opportunities:

When and by how much is the bank exposed to interest rate risk? For each maturity or repricing interval, what changes in interest rates will be beneficial and which will be damaging, given the current portfolioposition?

Transcribed Image Text:

Coming Week $200.00 21.00 Next 30 Days Next 31-90 More Than 90 Loans Securities Interest-sensitive assets Davs $475.00 40.00 Days S525.00 70.00 S300.00 26.00 Transaction deposits Time accts Monev market borrowings Interest-sensitive liabilities S320.00 100.00 136.00 0.00 290.00 140.00 S 0.00 196.00 100.00 S0.00 100.00 65.00