BAS Presentations - March 2023

3/1/2023

Economic Value of Equity Results at Tostitos Bank Didn’t Align with the Balance Sheet Structure

At the last exam, EVE was shown to drop 50% in this same scenario! Lesson: Non ‐ maturity deposit decay rates/average lives drive EVE results and can be manipulated to mask the risk of a long ‐ term asset structure.

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Independent Activity

• See handout with STMR commentary and questions.

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