BROCK UNIVERSITY

ECONOMICS 3F03

Money and Banking

Fall/Winter 1999-2000

Assignment 3

Instructor: Zisimos Koustas February 7, 2000

Due Date: February 18, 2000

Visit the Web site:

http://hepg.awl.com/mishkin/money&banking/student/student.htm

Download and print the two minicases entitled:

1. Bank Performance Analysis (shortcut: http://hepg.awl.com/mishkin/money&banking/minicases/bpa.htm )

2. Calculating and Comparing Gap, Duration and Risk Management Alternatives (shortcut: http://hepg.awl.com/mishkin/money&banking/minicases/ccgdrma.htm )

Work on both minicases.

Clarifications and error corrections

• The net interest margin (NIM) is defined as: net interest income/assets
• Question 3 in the second minicase should be amended to read “change in net interest margin” in both occurrences
• Question 6 in the second minicase should be omitted due to insufficient information

Use the definitions of bank-performance measures provided in your textbook. Show your detailed calculations not just the results.