Username: BobM Rating: Asked to: Talitha Taslim Date Created: 20 Aug 2016 |
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Category | 17 |
Tag | Financial |
Question | Please give the definition of 'Dynamic Gap'. |
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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