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Short Term Investments 6 month Interbank Loans Loans - Overdrafts (daily rate reset) - 10 year Housing (6mth rate reset) - 2 years (semi-annual) - 4...

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Hello, I need some help understanding this question: Draw the cashflow ladder for CBC's interest rate sensitive assets and liabilities. You should use the following time buckets; Time 0 for Call or overnight exposures and then six-monthly buckets up to 4 years (e.g. 6 months, 12 months, 18 months etc.).

I do not understand what the asset data means by "daily rate reset" and "6 month rate reset" with regards to determining incoming or outgoing cashflows.


Additionally, could someone explain the significance (if any) of the specification that the 6month liability is "180 days" ?


Thank you!



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Short Term Investments
6 month Interbank Loans Loans - Overdrafts (daily rate reset) - 10 year Housing (6mth rate reset) - 2 years (semi-annual) - 4 years (semi-annual) Current Rate
%pa 2.00 3.50
4.00 4.05
4.25 10,000,000 9,500,000
20,500,000
30,125,000
45,700,000 115,825,000

Screen Shot 2018-05-14 at 10.08.02 pm.png

Shareholders Funds
Capital Liabilities
- Call Deposits
- 6 months (180 days) - 2 years (semi-annual) - 4 years (semi-annual) Current Rate
%pa 1.50
1.90 1.95
2.15 11,250,000 62,000,000
34,700,000 4,700,000
3,175,000 104,575,000
115,825,000

Screen Shot 2018-05-14 at 10.08.10 pm.png

Table 2 Call 6 1 year 1.5 2 years 2.5 years 3 years 3.5 years 4 years
%pa months years

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