The difference between a bank's assets that will be re-priced in less than one year and the bank's liabilities that will be re-priced in less than one year expressed as a percent of total assets is

Question

Quizplus · Accepted Answer

The difference between a bank's assets that will be re-priced in less than one year and the bank's liabilities that will be re-priced in less than one year expressed as a percent of total assets is called the GAP ratio. This measures a bank's exposure to interest rate risk and is a key component in liquidity risk management.

The Difference Between a Bank's Assets That Will Be Re-Priced