Suppose that a bank has a negative gap. How can the bank use interest rate swaps to

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Suppose that a bank has a negative "gap". How can the bank use interest rate swaps to reduce its exposure to interest rate risk if it expects that interest rate will go up in near future?

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Financial Markets and Institutions

ISBN: 978-1337099745

12th edition

Authors: Jeff Madura

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Posted Date: Apr 19, 2024 08:07 AM

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Suppose that a bank has a negative gap. How can the bank use interest rate swaps to

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If a bank has a negative gap it means that its interestsensitive liabilities eg variablerate loans deposits exceed its interestsensitive assets eg fix... View the full answer

Financial Markets and Institutions

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