Interest rate risk management - Gap Exposure

AFM

Is Positive and negative gap exposure related to NIM's calculated by bank: The difference between interest received on deposits and interest paid on borrowings.

Himanshu Somani

CA Final

★ 97K+

05-Jan-23 18:14

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Answers (2)

No, when assets of a bank are more rate sensitive than liabilities then it is called positive gap 6. Gap exposure video 4 minutes onward

Sriram Somayajula

Admin

06-Jan-23 12:06

Sriram Somayajula Admin

No, when assets of a bank are more rate sensitive than liabilities then it is called positive gap 6. Gap exposure video 4 minutes onward

Got it, Thanks

Thread Starter

Himanshu Somani

CA Final

★ 97K+

06-Jan-23 15:22