Interest rate risk management

AFM

Hello Sir, What is the difference between rate sensitive and non rate sensitive assets/liabilities?

Suresh Avinash

CA Final

★ 3K+

18-Feb-23 22:34

705

Answers (1)

from a bank's perspective any asset that changes its value due to a change in interest rates eg a 5-year bond with a fixed coupon. Similarly for liabilities. Some investments that are long term in nature or fixed assets are not rate sensitive

Sriram Somayajula

Admin

19-Feb-23 11:13