Question: The following partially completed table shows the interrelationship between GAP, interest rates and changes in net interest income (NII) RSA=RSL RSA>RSL RSA

The following partially completed table shows the interrelationship between GAP, interest rates and changes in net interest income (NII)

RSA=RSL

RSA>RSL

RSA

GAP

(positive, negative or nil)

Interest change (decrease or increase) Net interest income (decrease, decrease or none)
RSA (A) (B) (Increase)
(C) Nil Decrease (D)
RSA>RSL (E) Increase (F)
(G) Negative (H) (Decrease)
RSA=RSL (I) (J) (none)

(K)

Positive Decrease (L)

Where RSA is interest rate sensitive assets and RSL is interest rate sensitive liabilities.

You are required to provide the outstanding information by copying the table and completing it. (6)

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