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Definition of 'Repricing Opportunity'
The change in interest rate of an interest-sensitive asset or liability. Banks earn income from interest, so their income fluctuates with changes in interest rates. A bank can minimize its interest-rate risk and maximize its net interest income by minimizing the differences in repricing opportunities between its assets, such as adjustable-rate mortgages, and its liabilities, such as the rate of interest it pays on customer deposits or certificates of deposit.
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Investopedia explains 'Repricing Opportunity'
Depending on the mix of assets and liabilities it holds, repricing opportunities can make a bank either asset-sensitive or liability-sensitive. Banks also experience other types of risk, including: foreign currency exchange rate risk, commodity price risk and trading investment portfolio risk.
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Search results for 'Repricing Opportunity'
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http://www.investopedia.com/articles/fundamental-analysis/09/equity-valuation-good-bad.asp
... And, considering the seismic risk-repricing feature common to distressed markets,
how ... below tangible book value) offer a type of absolute value opportunity. ...
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