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  1. D

    Net Interest Margin question

    On page 363 of the official Liquidity Risk book, we have below table, can someone help me understand the #2 point under the "possible management responses" column? My understanding is when we have a positive gap, we should reduce asset maturity or increase liab maturity, why the book says the...
  2. Nicole Seaman

    P2.T8.20.18. Asset-Liability Management and Duration Techniques (Rose Ch.7)

    Learning objectives: Discuss how asset-liability management strategies can help a bank hedge against interest rate risk. Describe interest-sensitive gap management and apply this strategy to maximize a bank’s net interest margin. Describe duration gap management and apply this strategy to...