The Unit 7 bank balance sheet analysis for GF500, finished: a repricing gap table, a 200-basis-point shock and the deposit betas that change its answer. Searches like "gf 500 unit 7 assignment example", "gf500 unit 7 sample" and "gf500 unit 7 example" land here.
What a finished GF500 Unit 7 bank balance sheet analysis looks like
The centerpiece is a rate-sensitivity gap table for a composite bank with 1.2 billion dollars in assets. Columns run across repricing horizons, zero to three months, three to twelve months, one to five years and over five years; rows list loans, securities, deposits and borrowings, with the amount repricing in each bucket. Within twelve months, rate-sensitive assets total 420 million against 560 million in rate-sensitive liabilities, a cumulative gap of negative 140 million, so a 200-basis-point rise cuts annual net interest income by about 2.8 million. The paper then reruns the shock with a deposit beta of 0.4 on 300 million of savings and checking balances, which moves the gap to positive 40 million and turns the loss into a small gain. A falling-rate case and a short economic value note follow.
How a GF500 Unit 7 example is structured
Everything rests on the table, so the paper builds toward it. A short opening describes the bank in balance-sheet terms: what it lends, how it funds, how much sits in non-maturity deposits. The assumptions come next as a numbered list, since they decide the result: which loans reprice at reset dates, how fast mortgages prepay, which deposits count as rate-sensitive. The gap table follows with bucket and cumulative rows. The shock is applied in its own section, first mechanically as gap times rate change, then with deposit betas, then as a fall. A comparison paragraph sets the three results side by side. The economic value note explains why a bank can protect income and still lose value, citing the 2023 failure of Silicon Valley Bank briefly. The conclusion names the assumption the answer is most sensitive to.
The bank as assets and funding
Loans, securities, deposits and borrowings are described by repricing behavior rather than by product name, since repricing is what the shock acts on.
Assumptions numbered and exposed
Reset dates, prepayment speeds and deposit sensitivity are listed before any calculation, so a reader can see which inputs move the answer.
Gap by bucket and cumulative
Four repricing horizons each show assets, liabilities and the gap between them, with a running total that makes the twelve-month position obvious.
One shock, three runs
The rise is applied mechanically, then with a deposit beta, then reversed as a fall, so the asymmetry and the beta's weight both show.
Income protected, value lost
A short economic value note explains how long fixed-rate assets can shed market value even while near-term income looks steady.
Where marks go in GF500 Unit 7
Graders on this unit look first at whether the shock result follows from the table. A change in net interest income stated without the gap it came from, or a gap computed on total assets instead of rate-sensitive ones, loses credit immediately. Treating every deposit as repricing at once is the most common modeling error, because it makes a liability-sensitive bank look far more exposed than it is, and a paper that never mentions deposit behavior has left out the variable that decided most real outcomes in 2022 and 2023. Signs cause trouble too: a negative gap with rising rates should reduce income, and a paper reporting the opposite without explanation is marked down. The strongest analyses name the single assumption carrying the result and show what happens when it changes.
Get a GF500 Unit 7 example written to your instructions
Attach the balance sheet your GF500 Unit 7 prompt supplies, the rubric and any shock size your instructor set. From those figures we build the gap table, run the shock with and without deposit betas and state every assumption. It comes free as your first custom sample, usually in 24-48h.
GF500 Unit 7 questions, answered
What is a deposit beta and do I need one?
It is the share of a policy rate change that a bank passes on to its depositors. A beta of 0.4 means a 100-basis-point rise lifts deposit rates by 40. Many prompts do not require one, but adding it shows you understand why real banks rarely behave like the mechanical gap model, and graders often reward that recognition.
Should the analysis include duration gap or economic value of equity?
If your prompt asks only about net interest income, a short note on economic value is enough and shows awareness of the limits of income-based measures. Some sections ask for a full duration gap, which weights each side by its duration and by leverage. The sample adds a brief value note; the custom version expands it where your instructions require.
What if the prompt's balance sheet has no repricing data?
Then the sample states an assumption for each line, such as adjustable loans resetting annually or securities held to maturity, and flags each one as an assumption. That keeps the analysis checkable even when the prompt is thin, and it lets a grader follow the reasoning. A different set of assumptions would give a different gap, and the paper says so plainly.