Dictionary of Banking Terms: interest sensitive assets
interest sensitive assets
bank assets, principally loans, that are subject to changes in interest rates, either at maturity or when they are repriced according to an index rate. Repricing of these assets is pegged or indexed to the upward or downward fluctuations of a publicly disclosed rate or cost of funds index, such as the six-month Treasury bill, the bank prime rate, and so on. Examples are variable rate consumer loans, variable rate demand loans, and adjustable rate mortgages.
