Part A

Dollar Interest-Sensitive Gap = Interest-Sensitive Assets Interest Sensitive Liabilities

2018 = 8,201,705 - 2,322,002 = 5,879,703

2019 = 9,266,792 - 2,358,414 = 6,908,378

2020 = 9,470,705 - 2,727,920 =6,742,785

Relative Interest-Sensitive Gap = Dollar IS gap / Bank size x 100

2018 = 5,879,703 / 223,682,159 x 100 = 2.628%

2019 = 6,908,378 / 231,795,634 x 100 = 2.980%

2020 = 6,742,785 / 289,556,453 x 100 = 2.328%

Interest Sensitivity Ratio = interest sensitive assets / interest sensitive liabilities x 100

2018 = 8,201,705 / 2,322,002 x 100 = 3.5325%

2019 = 9,266,792 / 2,358,414 x 100 = 3.929%

2020 = 9,470,705 / 2,727,920 x 100 = 3.471%

the question is

Using your answer in part (a) above, what asset-liability management strategy will be suitable for your selected bank? Why? Justify your arguments with appropriate reasons.