Question: What information is available from earnings sensitivity analysis? 9. Interpret the following earnings at risk data. What does it suggest regarding the banks risk exposure?

What information is available from earnings sensitivity analysis?

9. Interpret the following earnings at risk data. What does it suggest regarding the banks risk exposure?

Earnings at Risk

Interest Rate Change %

1 Year

2 Years

+1% shock

+2.4%

+4.9%

-1% shock

-1.7%

-5.6%

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