Question: Interpret the following earnings at risk data. What does it suggest regarding the banks risk exposure? Earnings- at- Risk Interest Rate Change (%) 1 Year

Interpret the following earnings at risk data. What does it suggest regarding the bank’s risk exposure?
Earnings- at- Risk
Interest Rate Change (%) 1 Year 2 Years
+ 1% shock + 2.4% + 4.9%
- 1% shock - 1.7% - 5.5%
- 1% yield curve inversion + 1.1% - 2.6%

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