Question: decrease or increase Suppose that Pettis Bank has $200 million in assets which are rate sensitive. Pettis also has $400 million in rate-sensitive liabilities. Pettis

decrease or increase

Suppose that Pettis Bank has $200 million in assets which are rate sensitive. Pettis also has $400 million in rate-sensitive liabilities. Pettis seeks to analyze its exposure to interest rate risk by conducting a gap analysis. Given this information, you have calculated that Pettis Bank has a gap of -$200 million and a gap ratio of 0.5. If interest rates increase, Pettis' net interest margin would be expected to

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