What actions could you take to reduce the banks


Suppose you are the manager of a bank that has $15 million of fixed-rate assets, $30 million of ratesensitive assets, $25 million of fixed-rate liabilities, and $20 million of rate-sensitive liabilities. Conduct a gap analysis for the bank, and show what will happen to bank profits if interest rates rise by 5 percentage points. What actions could you take to reduce the bank’s interest-rate risk?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: What actions could you take to reduce the banks
Reference No:- TGS02340725

Expected delivery within 24 Hours