A thrift has an annual CGAP of −$25 million. A credit union has an annual CGAP of +$5 million. The thrift has total assets of $500 million and net income of $7.5 million,and the credit union has total assets of $40 million and net income of $0.7 million.
Assuming a zero spread effect,if all interest rates decrease 50 basis points,what is the change in NII for the thrift? For the credit union?

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The Answer of A thrift has an annual CGAP of −$25 million. A credit union has an annual CGAP of +$5 million. The thrift has total assets of $500 million and net income of $7.5 million,and the credit union has total assets of $40 million and net income of $0.7 million.
Assuming a zero spread effect,if all interest rates decrease 50 basis points,what is the change in NII for the thrift? For the credit union?

A Thrift Has an Annual CGAP of −$25 Million