Behavioural gap: Difference between revisions
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''Banking''. | |||
A mismatch in the timing at which interest rate assets and liabilities are likely to reprice based on both: | A mismatch in the timing at which interest rate assets and liabilities are likely to reprice based on both: | ||
*Their contractual terms; and | *Their contractual terms; and | ||
*An assessment of customers' expected behaviour. | *An assessment of customers' and the bank's expected behaviour. | ||
Revision as of 11:51, 29 October 2016
Banking.
A mismatch in the timing at which interest rate assets and liabilities are likely to reprice based on both:
- Their contractual terms; and
- An assessment of customers' and the bank's expected behaviour.
Behavioural gaps are often smaller than the related contractual gaps.
