莲 制卧爱分贸易土学 银行管理学 is to cut costs.What are the advantages and disadvantages of this approach?What other approaches are possible? 2.What are the primary sources of noninterest income for both a small community bank and a large bank with many subsidiaries and global operations? 3.What are the components of noninterest expense? 4.Describe why the efficiency ratio is a meaningful measure of cost control. Describe why it may not accurately measure cost control. 5.Canadian Imperial Bank of Commerce(CIBC)reports that just 20 percent of its customers were profitable.Assuming that this applies to individuals'account relationships,make three recommendations to increase the profitability of these accounts. 6.Describe the strengths and weaknesses of expense reduction,revenue enhancement,and contribution growth strategies. Chapter 4 Managing Interest Rate Risk:GAP and Earnings Sensitivity 1.List the basic steps in static GAP analysis.What is the objective of each? 2.Are the following assets rate sensitive within a six-month time frame?Explain. a.3-month T-bill b.federal funds sold(daily repricing) c.2-year Treasury bond with semiannual coupon payments d.4-year fully amortized car loan with $450 monthly payments including both principal and interest e.commercial loan priced at the bank's prime rate plus 2 percent 3.What is the fundamental weakness of the GAP ratio compared with GAP as a measure of interest rate risk? 4.Consider the following asset and liability structures: County Bank Asset:$10 million in a 1-year,fixed-rate commercial loan Liability:$10 million in a 3-month CD City Bank Asset:$10 million in a 3-year,fixed-rate commercial loan Liability:$10 million in a 6-month CD a.Calculate each bank's 3-month,6-month,and 1-year cumulative GAP b.Which bank has the greatest interest rate risk exposure as suggested by each GAP measure?Consider the risk position over the different intervals. 5.Management at Bay Bank expects its net interest margin to equal 4.8 percent during the next year.It will allow variation in NIM of just 10 percent during the year and expects interest rates to either rise or fall by 2 percent.If management expects the bank to have $400 million in earning assets,determine how large its 1-year cumulative GAP can be to not exceed the allowable variation in NIM. 6.What information is available from earnings sensitivity analysis that is not provided by static GAP analysis? 第3页共8页银行管理学 第 3 页 共 8 页 is to cut costs. What are the advantages and disadvantages of this approach? What other approaches are possible? 2. What are the primary sources of noninterest income for both a small community bank and a large bank with many subsidiaries and global operations? 3. What are the components of noninterest expense? 4. Describe why the efficiency ratio is a meaningful measure of cost control. Describe why it may not accurately measure cost control. 5. Canadian Imperial Bank of Commerce (CIBC) reports that just 20 percent of its customers were profitable. Assuming that this applies to individuals’ account relationships, make three recommendations to increase the profitability of these accounts. 6. Describe the strengths and weaknesses of expense reduction, revenue enhancement, and contribution growth strategies. Chapter 4 Managing Interest Rate Risk: GAP and Earnings Sensitivity 1. List the basic steps in static GAP analysis. What is the objective of each? 2. Are the following assets rate sensitive within a six-month time frame? Explain. a. 3-month T-bill b. federal funds sold (daily repricing) c. 2-year Treasury bond with semiannual coupon payments d. 4-year fully amortized car loan with $450 monthly payments including both principal and interest e. commercial loan priced at the bank’s prime rate plus 2 percent 3. What is the fundamental weakness of the GAP ratio compared with GAP as a measure of interest rate risk? 4. Consider the following asset and liability structures: County Bank Asset: $10 million in a 1-year, fixed-rate commercial loan Liability: $10 million in a 3-month CD City Bank Asset: $10 million in a 3-year, fixed-rate commercial loan Liability: $10 million in a 6-month CD a. Calculate each bank’s 3-month, 6-month, and 1-year cumulative GAP. b. Which bank has the greatest interest rate risk exposure as suggested by each GAP measure? Consider the risk position over the different intervals. 5. Management at Bay Bank expects its net interest margin to equal 4.8 percent during the next year. It will allow variation in NIM of just 10 percent during the year and expects interest rates to either rise or fall by 2 percent. If management expects the bank to have $400 million in earning assets, determine how large its 1-year cumulative GAP can be to not exceed the allowable variation in NIM. 6. What information is available from earnings sensitivity analysis that is not provided by static GAP analysis? SUM