Calculate the repricing gap and the impact on net interest

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Reference no: EM13317500

Consider the following balance sheet positions for a financial institution:

*Rate-sensitive assets = $200 million

Rate-sensitive liabilities = $100 million

*Rate-sensitive assets = $100 million

Rate-sensitive liabilities = $150 million

*Rate-sensitive assets = $150 million

Rate-sensitive liabilities = $140 million

a .Calculate the repricing gap and the impact on net interest income of a 1percent increase in interest rates for each position.

b. Calculate the impact on net interest income of each of the above situations, assuming a 1 percent decrease in interest rates.

c. What conclusion can you draw about the repricing model from these results?

Reference no: EM13317500

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