1.a The repricing model requires specification of repricing buckets. Why must a bucket time period be specified?...

Question:

1.a The repricing model requires specification of repricing buckets. Why must a bucket time period be specified? How does the choice of the repricing buckets impact on the delineation between rate-sensitive and fixed-rate assets and liabilities? LO 5.3 What determines the optimal length of the repricing period? What are the shortcomings of very short repricing periods?

What are the shortcomings of very long repricing periods?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Financial Institutions Management A Risk Management

ISBN: 9781743073551

4th Edition

Authors: Helen Lange, Anthony Saunders, Marcia Millon Cornett

Question Posted: