In terms of interest rate hedging, a liability sensitive bank means that the bank... In terms of interest rate hedging, a liability sensitive bank means that the bank has more interest sensitive d...

In terms of interest rate hedging, a liability sensitive bank means that the bank has more interest sensitive deposits (and perhaps other liabilities) than rate sensitive assets in the particular planning period. B. i. True False, it actually has more rate sensitive derivatives than assets False, it means that its deposit customers are particularly sensitive and can take out their deposits any time None of the above V.