Consider the following repricing buckets: Repricing Bucket Assets Liabilities 1 day $100,000 $240,000 1 day to 3 months $200,000 $140,000 3 to 6 months $200,000 $200,000 6 to 12 months $500,000 $160,000 1 to 5 years $150,000 $260,000 Over 5 years $50,000 $200,000 What is the change in the bank’s future net interest income if the average rate change for assets and liabilities that can be repriced within 12 months is an decrease of 1%?
Consider the following repricing buckets: Repricing Bucket Assets Liabilities 1 day $100,000 $240,000 1 day to 3 months $200,000 $140,000 3 to 6 months $200,000 $200,000 6 to 12 months $500,000 $160,000 1 to 5 years $150,000 $260,000 Over 5 years $50,000 $200,000 What is the change in the bank’s future net interest income if the average rate change for assets and liabilities that can be repriced within 12 months is an decrease of 1%?
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money
Section: Chapter Questions
Problem 9.21MCE
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Consider the following repricing buckets:
| Repricing Bucket | Assets | Liabilities |
| 1 day | $100,000 | $240,000 |
| 1 day to 3 months | $200,000 | $140,000 |
| 3 to 6 months | $200,000 | $200,000 |
| 6 to 12 months | $500,000 | $160,000 |
| 1 to 5 years | $150,000 | $260,000 |
| Over 5 years | $50,000 | $200,000 |
What is the change in the bank’s future net interest income if the average rate change for assets and liabilities that can be repriced within 12 months is an decrease of 1%?
Round your final answer to 2 decimal places.
E.g. if the final answer is -$3,590 , type -3,590 in the answer box. If the final answer is $3,590 , type 3,590 in the answer box (i.e do not type the dollar sign) .
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