fill in the cells in the attached gap analysis assignment 10 a sheet from reports or from the excel file download full reports

Answer the following questions:

1. Estimate the two-quarter and four-quarter risk-sensitive assets (RSAs), risk-sensitive liabilities (RSLs), and the GAPs. Unless otherwise instructed, do not include federal funds sold or discount window advances in your estimation under the assumption it is a one-time event However, include federal funds purchased under the assumption that the bank is a net buyer of funds. Also do not include demand deposits.

2. If average interest rates increase by 2% in two quarters, what is the impact on net interest income (∆ NII)? If interest rates decrease by 2%?

3. If average interest rates increase by 2% in four quarters, what is the impact on net interest income (∆ NII)? If interest rates decrease by 2%?

4. Estimate the GAP ratio (RSA/RSL) and the GAP/Assets ratio (in percent) for both time buckets.

5. If interest rates are expected to decrease in the near future, should it increase or decrease its GAP?