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- Using the attached picture explain if the bank is in a good position in terms of the liquidity gap ratio.The financial performance of both Commercial Banks and Savings Banks is measured using the Net Interest Margin (NIM). a, Explain what the Net Interest Margin is measuring and evaluating. b, Cite an example of why the Net Interest Margin could turn negative.If the interest rates go up by 1%, using the duration and convexity rule to determine the net worth of the bank and the equity to asset ratio
- Definition of size ratio and growth ratio for comparing between BanksA bank is least likely to use which of the following ratioswhen analyzing the likelihood that a borrower will payinterest and principal on its loans?a. Current ratio. c. Times interest earned ratio.b. Debt-to-assets ratio. d. Price/earnings ratio.what is the relationship between tne intrest rate and the bank prime loan rate