Dictionary of Banking Terms: repricing opportunities
repricing opportunities
- days when bank loans or deposits are subject to a change in interest rate. Interest rates in variable rate consumer loans and adjustable rate mortgages may reprice at scheduled intervals, for example, semiannually or annually, based on changes in an index rate. Other loan and deposit rates can change more frequently, sometimes even daily. A bank with more one-year deposit liabilities changing rates than one-year assets is said to be liability sensitive; if more one-year assets reprice than liabilities, it is asset-sensitive.
- maturity date of a certificate of deposit or other time deposit that can be renewed (rolled over) at a different rate.
