The Re-pricing Model called re-pricing GAP model-
1. Income oriented model:
Target variable = Net Interest Income = Interest Revenues – Interest Expenses
2. Interest Rate Gap difference between assets and liabilities sensitive to interest rates changes in a predefined time period
3. An asset or a liability is “sensitive” if, in the relevant time period (“gapping period”), it reaches its maturity or there is a renegotiation of the interest rate G=SA-SL
