Bank Analysis School eBook

Internal Use Only

Learning Objectives

Video Series Review (Kahoot!)

Current interest rate environment

What is interest rate risk and what does it look like?

Importance of deposit assumptions

Evaluate Sunny State Bank

Internal Use Only

Income Simulation Forecast Sophisticated “what if” budget

Economic Value of Equity Changes in market value of the balance sheet

Typically 1- or 2-year time horizon

Risk beyond 2 years