The following table discloses the interest-rate sensitivity of two SIs (dollar amounts are in millions). Based on
Question:
The following table discloses the interest-rate sensitivity of two SIs (dollar amounts are in millions).
Based on this information only, which institution's stock price would likely be affected more by a given change in interest rates? Justify your opinion.
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Interest Sensitivity Period From From Within 1-5 5-10 Over 10 1 Year Years Years Years Lawrence S&L $ 8,000 Interest-earning assets $3,000 $7,000 $3,000 Interest-bearing liabilities 11,000 6,000 2,000 1,000 Manhattan S&L Interest-earning assets 1,000 1,000 4,000 3,000 1,000 Interest-bearing liabilities 2,000 2,000 1,000
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