Question: 3. What does a bank consider when engaging in asset management? What does a bank consider when doing liability management? Using the example below explain

 3. What does a bank consider when engaging in asset management?

3. What does a bank consider when engaging in asset management? What does a bank consider when doing liability management? Using the example below explain why these should be done together rather than exclusive of each other (asset/liability management)? LOANS 100M loans @ 9% 200M loans @ 7% INT. INCOME $ 9M $14M INT EXP (WACC=6%) $6M $12M 3. What does a bank consider when engaging in asset management? What does a bank consider when doing liability management? Using the example below explain why these should be done together rather than exclusive of each other (asset/liability management)? LOANS 100M loans @ 9% 200M loans @ 7% INT. INCOME $ 9M $14M INT EXP (WACC=6%) $6M $12M

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