Interest gap: Difference between revisions
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imported>Doug Williamson (Classify page.) |
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* [[Behavioural gap]] | * [[Behavioural gap]] | ||
* [[Contractual gap]] | * [[Contractual gap]] | ||
* [[Exposure]] | |||
* [[Gap report]] | * [[Gap report]] | ||
* [[Gap risk]] | * [[Gap risk]] | ||
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* [[Liquidity gap]] | * [[Liquidity gap]] | ||
* [[Maturity ladder]] | * [[Maturity ladder]] | ||
* [[ | * [[Repricing]] | ||
* [[Risk management]] | |||
[[Category:Financial_products_and_markets]] | |||
[[Category:The_business_context]] | [[Category:The_business_context]] | ||
Latest revision as of 21:20, 4 December 2023
A mismatch in the timing at which interest rate assets and liabilities are repriced.
A positive gap (assets repricing more quickly than liabilities) means an exposure to falling interest rates and vice versa.
Banks and other financial institutions commonly have a 'structural' interest gap, resulting from the nature of their business and the structure of their balance sheets.
This structural interest gap is usually negative.
The negative interest gap results from shorter-term liabilities funding longer term assets.
