10a. Using the data below, determine the repricing gap for each maturity range. ...

80.2K

Verified Solution

Question

Accounting

10a. Using the data below, determine the repricing gap for each maturity range.

maturity range

time deposits

expected MMDA runoff

expected savings runoff

securities

loans and leases

3 months or less

2500000

550000

750000

5000

2500000

over 3 months to 1 year

2550000

2250000

2250000

100000

7500000

over 1 year to 3 years

450000

0

0

180000

2000000

over 3 years

100000

0

0

550000

3800000

b. If interest rates are expected to increase by 45 basis points over the next year, what effect will it have on the bank in the following year?

c. What actions might the manager of the bank take now to reduce the risk associated with the expected change in rates?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students