Dynamic gap: Difference between revisions

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imported>Doug Williamson
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imported>Doug Williamson
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* [[Interest gap]]
* [[Interest gap]]
* [[Liquidity gap]]
* [[Liquidity gap]]
[[Category:Identify_and_assess_risks]]

Latest revision as of 21:07, 29 June 2022

Banking.

A mismatch in the timing at which interest rate assets and liabilities are likely to reprice based on all of:

  • Their contractual terms; and
  • An assessment of customers' and the bank's expected behaviour; and
  • The recognition that the behavioural assumptions are themselves functions of other factors, including the interest rate change itself.


Dynamic gaps are a refinement of behavioural gaps.


See also