What is a maturity gap? How can the maturity model be used to immunize an FIs portfolio?

What is the critical requirement that allows maturity matching to have some success in

immunizing the balance sheet of an FI? If a bank manager is certain that interest rates are going

to increase within the next six months, how should the bank manager adjust the banks maturity

gap to take advantage of this anticipated increase? What if the manager believes rates will fall?

Would your suggested adjustments be difficult or easy to achieve?

Finance