Question: Arabian Gulf Bank (AGB) , headquartered in Manama, utilizes a one-ye...
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Question: Arabian Gulf Bank (AGB), headquartered in Manama, utilizes a one-year gap analysis period. The risk team forecasts a steepening of the yield curve due to strong long-term economic outlook coupled with the Central Bank of Bahrain keeping short-term rates relatively steady. This results in an asymmetrical rate change for different maturity buckets.
The bank's rate-sensitive positions and the corresponding rate changes are:
| Metric | Short-Term (0-6 Months) | Long-Term (6-12 Months) |
| RSA (Rate-Sensitive Assets) | BHD 210 million | BHD 730 million |
| RSL (Rate-Sensitive Liabilities) | BHD 490 million | BHD 140 million |
| Interest Rate Change | 0.6% | 1.3% |
What is the total change in the bank's Net Interest Income (ΔNII)?
Write your answer to 2 decimal points for example ( -2.75 or 5.28).
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