Interest gap and Islamic banking: Difference between pages

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imported>Doug Williamson
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imported>Doug Williamson
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A mismatch in the timing at which interest rate assets and liabilities are repriced.
Islamic banking is the provision of sharia-compliant banking products and services.


A positive gap (assets repricing more quickly than liabilities) means an exposure to falling interest rates and vice versa.


==See also ==
* [[Islamic finance]]
* [[Sharia-compliant fixed income capital markets instruments for cross-border transactions]]


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.
[[Category:Accounting,_tax_and_regulation]]
 
 
This structural interest gap is usually negative.
 
The negative interest gap results from shorter-term liabilities funding longer term assets.
 
 
== See also ==
* [[Assets]]
* [[Behavioural gap]]
* [[Contractual gap]]
* [[Gap report]]
* [[Gap risk]]
* [[Interest]]
* [[Interest gap report]]
* [[Liabilities]]
* [[Liquidity gap]]
* [[Maturity ladder]]
* [[Exposure]]
 
[[Category:The_business_context]]
[[Category:The_business_context]]
[[Category:Financial_products_and_markets]]

Revision as of 15:44, 1 January 2019

Islamic banking is the provision of sharia-compliant banking products and services.


See also