What is the banks net interest margin

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Kansas City Bank had interest revenues of $80 million last year and interest expenses of $35. About $400 million of its $1 billion in assets are rate sensitive, and $700 million of its liabilities are rate sensitive. a) What is the Bank’s net interest margin? (Use the formula: Net Interest Margin= (Interest revenue- Interest Expenses)/ Assets b) What is the Gap of the Bank? Use: Gap = rate sensitive assets – Rate sensitive liabilities c) What is the Gap ratio? Use: Gap Ratio = rate sensitive assets / Rate sensitive liabilities

Reference no: EM131182762

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