Dynamic gap

From ACT Wiki
Revision as of 21:02, 29 October 2016 by imported>Doug Williamson (Create the page. Sources: linked pages.)
(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to navigationJump to search

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