Petri Bank had interest revenues of $70 million last year and $30 million in interest expenses. About $300 million of Petri's $800 million in assets are rate-sensitive, while $600 million of its liabilities are rate-sensitive. Petri Bank's gap is $____.

Question

Quizplus · Accepted Answer

Petri Bank's gap is calculated as the difference between rate-sensitive assets and rate-sensitive liabilities. With $300 million in rate-sensitive assets and $600 million in rate-sensitive liabilities, the gap is $300 million - $600 million = -$300 million.

Petri Bank Had Interest Revenues of $70 Million Last Year