The following is the balance sheet of Southpac bank. Assume that Demand deposit does not pay...
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The following is the balance sheet of Southpac bank. Assume that Demand deposit does not pay any interest. Assets ($millions) Liabilities ($millions) 1-year consumer loan Demand deposit 3-month treasury bills 6-month liquidity loan 10-year fixed rate industry loan Total 50 50 30 170 300 1-year time deposit 6-month commercial paper Equity Capital 20 100 150 30 300 Now assume that the annual payment from 10-year industry loan will be $6 million over the next one year, out of which $5 million will be principal payment and $1 million will be interest payment. What is the bank's one-year repricing gap in $millions? The following is the balance sheet of Southpac bank. Assume that Demand deposit does not pay any interest. Assets ($millions) Liabilities ($millions) 1-year consumer loan Demand deposit 3-month treasury bills 6-month liquidity loan 10-year fixed rate industry loan Total 50 50 30 170 300 1-year time deposit 6-month commercial paper Equity Capital 20 100 150 30 300 Now assume that the annual payment from 10-year industry loan will be $6 million over the next one year, out of which $5 million will be principal payment and $1 million will be interest payment. What is the bank's one-year repricing gap in $millions?
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The oneyear repricing gap is calculated by subtracting the total a... View the full answer
Related Book For
Financial Institutions Management A Risk Management Approach
ISBN: 978-0071051590
8th edition
Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders
Posted Date:
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