A bank manager would want to set the repricing gap greater than zero when interest rates are expected to rise.

Question

Quizplus · Accepted Answer

A positive repricing gap means that the bank's interest-sensitive assets will reprice or adjust to higher interest rates faster than its interest-sensitive liabilities. This would be beneficial for the bank during a period of rising interest rates, as it would result in a higher net interest income.

A Bank Manager Would Want to Set the Repricing Gap