If a bank has a positive repricing gap, falling interest rates increase profitability.

Name: If a bank has a positive repricing gap, falling interest rates increase profitability.
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A positive repricing gap means a bank's interest-sensitive assets will reprice or adjust to new interest rates sooner than its liabilities. If interest rates fall, the bank's earnings on assets decrease more quickly than its cost of liabilities, potentially reducing profitability.

If a Bank Has a Positive Repricing Gap, Falling Interest