Essay About Assetsvariable-Rate Loans And Bbus Bachelor Of Businessfinancefin4243Global Banking

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[pic 1]BBUS BACHELOR OF BUSINESSFINANCEFIN4243Global Banking and FinanceINDIVIDUAL ASSIGNMENTNAME : CHIN SIM WOOID NUMBER : I14006419SECTION : 5FN1Lecturer: MS.REBECCA Yew Ming Yuan (A)AssetsVariable-rate loans > 30days33Fixed rate loans < 30days8Variable-rate loans < 30days16TOTAL ASSETS57Liabilitiesdemand deposits157-day certificates of deposit8TOTAL LIABILITIES23Re-pricing gap = RSA-RSL                         = 57 billion - 23 billion                         = $34 billionB) change in probability = Re-pricing gap x change in rates x period                                        = $34 billion x (-50% x 1%) x 30/365                                        = -$13,392,602.74What is Asymmetric Information?Information asymmetry is a party to the transaction with the other compared to the case more or higher information. This often happens in the transaction, the seller know more buyer, although torsion can occur. Potentially, this could be a hazardous situation because the other party can take advantage of the lack of knowledge. As technology advances, asymmetric information is already on the decline, as more and more people are able to easily access all types of information.