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Username: BobM

Rating:
Guru Stars

Asked to: Talitha Taslim

Date Created: 20 Aug 2016
Category 17
Tag Financial
Question Please give the definition of 'Dynamic Gap'.
Advice from Guru
Hello BobM,

Refers to asset and liability risk management at financial institutions. An asset-liability model that takes into account projected future balances or the difference between interest sensitive assets and interest sensitive liabilities at specific future time periods. Simply: a bank's gap is defined as the difference between a bank's rate-sensitive assets and rate-sensitive liabilities.

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