Please Help!!! 1. A bank has the following balance sheet: Assets Return Million $ Liabilities and Equity

Please Help!!!

Transcribed Image Text:

1. A bank has the following balance sheet: Assets Return Million $ Liabilities and Equity Cost Million $ Cash 0.00% $ 35 Fixed-rate deposits 3.50% $240 Investments (<1 year) 4.00% $200 Rate-sensitive deposits 2.00% $260 Short-term loans (<1 year) 6.00% $225 Fed fund borrowings 2.50% $ 25 Long-term borrowings at Long-term fixed rate loans fixed rate (maturity > 1 (maturity>1 year) 6.75% $250 year) 5.50% $119 Total $710 Equity $ 66 Total $710 Calculate the bank's one-year repricing gap (in millions of $). Also, if interest rates decline by 100 basis points, estimate the change in the bank's NII over the year. 1. A bank has the following balance sheet: Assets Return Million $ Liabilities and Equity Cost Million $ Cash 0.00% $ 35 Fixed-rate deposits 3.50% $240 Investments (<1 year) 4.00% $200 Rate-sensitive deposits 2.00% $260 Short-term loans (<1 year) 6.00% $225 Fed fund borrowings 2.50% $ 25 Long-term borrowings at Long-term fixed rate loans fixed rate (maturity > 1 (maturity>1 year) 6.75% $250 year) 5.50% $119 Total $710 Equity $ 66 Total $710 Calculate the bank's one-year repricing gap (in millions of $). Also, if interest rates decline by 100 basis points, estimate the change in the bank's NII over the year.