A bank has a negative $GAP. If interest rates fall the bank's overall NII will

Name: A bank has a negative $GAP. If interest rates fall the bank's overall NII will
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When a bank has a negative GAP, it means that its interest-sensitive liabilities exceed its interest-sensitive assets. If interest rates fall, the interest expense on liabilities will decrease more than the interest income on assets, leading to an increase in the bank's Net Interest Income (NII).

A Bank Has a Negative $GAP