Economists expect interest rates to rise in the near future

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Assets Liabilities and Owner's Equity Buildings and furniture $900 Cash $80 Commercial paper $500 Deposit in the Fed $320 Government agency bonds $800 Home mortgages $1200 Loan to Bank A $400 Loans to firms $1100 Loans to households $1300 Municipal bonds $1400 US government bonds $600 Checking deposits $2100 Savings deposits $800 Time deposits $200 Borrowing from Bank B $500 Borrowing from the Fed $1600 Other liabilities $1000 Equity $??? Total assets = $8600 Total liabilities and owner's equity = ??? Additional information No loans are currently charged off, but 20% of residential mortgage (home) loans are nonperforming. Use the reserve requirement ratio we've used in all graded assignments. Interest income = $240 Income from non-interest sources (letters of credit, fees) = $20 Interest expense = $50 Non-interest expense (wages and salaries) = $80 All borrowings, and half of the loans to business firms, will be repriced in the next month. Economists expect interest rates to rise in the near future. Calculate the (one year repricing) GAP for this bank. Carefully follow all numeric instructions.

Reference no: EM131065298

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