Interest-sensitive assets are financial products that are vulnerable to changes in lending rates. The adjustable-rate mortgage is an example.

Imagine Some Bank has $10 billion in interest rate-sensitive assets at 8 percent and only $1 billion in interest rate-sensitive liabilities at 5 percent. It ...

Interest rate sensitivity is a measure of how much the price of a fixed-income asset will fluctuate as a result of changes in the interest rate environment.

Rate-sensitive assets for a bank would include loans, leases, security investments, Federal Funds sold, and interest bearing bank balances.

Rate Sensitive Assets (RSA) The dollar amount of interest earning assets that will have a rate change due to maturity, repricing or principal paydown within a ...

26 мар. 2024 г. · An asset-sensitive balance sheet is one where the institution's assets reprice more quickly than its liabilities. In such a scenario, net ...

A bank that has more assets repricing than liabilities for a given time frame is said to be asset sensitive, or positively gapped.

11 апр. 2024 г. · When people refer to a bank having Interest Sensitive Assets, they are referring to the bank having assets that reprice quicker, so that if ...

The formation of net interest income that occurs in the company is influenced by a positive gap position (RSA > RSL) and a decrease in interest rates.