Question: 2. Explain duration GAP analysis in banks. Calculate the duration Gap of the following excerpts from the balance sheet of a bank. Also calculate the

2. Explain duration GAP analysis in banks. Calculate the duration Gap of the following excerpts from the balance sheet of a bank. Also calculate the impact on the equity of the bank in the different interest rates scenarios.

2. Explain duration GAP analysis in banks. Calculate the duration Gap of

Scenarios for Impact analysis:

1. Interest rates increased by 1%

2. Interest rates decreased by 1% (10 Marks) Need sol of 350 words for each question

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