For most banks, the average duration of liabilities exceeds the average duration of assets, so the duration gap is positive.

Name: For most banks, the average duration of liabilities exceeds the average duration of assets, so the duration gap is positive.
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For most banks, the average duration of assets typically exceeds the average duration of liabilities, leading to a negative duration gap. This is because banks often lend (assets) for longer terms than the duration of their deposits (liabilities).

For Most Banks, the Average Duration of Liabilities Exceeds the Average