Because of its complexity, small deposit-taking institutions rarely use the repricing, or funding gap, model.

Name: Because of its complexity, small deposit-taking institutions rarely use the repricing, or funding gap, model.
Brand: Quizplus
Rating: 4.9 (44 reviews)

Question

Quizplus · Accepted Answer

Small deposit-taking institutions often use the repricing or funding gap model because it is a relatively simple tool for managing interest rate risk by comparing the timing of asset and liability cash flows.

Because of Its Complexity, Small Deposit-Taking Institutions Rarely Use the Repricing