Fill in the blank in the balance sheet above what is the


1. Use the balance sheet of a bank below to answer the following. Assets are either fixed or rate sensitive.

Assets                                                                              Liabilities_______

Required Reserves                6 m                 Money Market Deposits 100 m

Excess Reserves                 _____                Capital                            10 m

T-bills                                    25 m                      

Mortgages (30 year)              60 m

Commercial Loans (5 year)   10 m

(In addition, assume that the duration of its assets is 1.3, and the duration of liabilities is .7 years.)

a. Fill in the blank in the balance sheet above.

b. What is the Basle risk weighted assets (in $)?

c. What is the Basle capital requirement (in $)?

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Financial Management: Fill in the blank in the balance sheet above what is the
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