Dynamic gap: Difference between revisions
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imported>Doug Williamson (Create the page. Sources: linked pages.) |
imported>Doug Williamson (Classify page.) |
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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.