The balance sheet of XYZ Bank appears below. All figures in millions of U.S. dollars.

-The cumulative one-year repricing gap (CGAP)for the bank is
A)$25 million.
B)$-140 million.
C)$15 million.
D)$-150 million.

Question

The balance sheet of XYZ Bank appears below. All figures in millions of U.S. dollars. 
 
-The cumulative one-year repricing gap (CGAP)for the bank is
A)$25 million. 
B)$-140 million. 
C)$15 million. 
D)$-150 million.

Quizplus · Accepted Answer

Cumulative one-year repricing gap (CGAP)
CGAP = one-year RSA - one-year RSL
CGAP = 555 - 540 = $15 million
CGAP is positive. The bank faces reinvestment risk.

The Balance Sheet of XYZ Bank Appears Below