Definition

Rate Sensitive Liabilities (RSLs)

RSL or rate sensitive liabilities are those liabilities (any short term deposits that a bank pays a variable interest rate to the customer) whose value (Present value/PV or Future Value/FV) changes with the change in market interest rate.

Share it:  Cite

More from this Section

  • Pro rata liability
    Pro rata liability is a generic term for a provision that applies when two or more policies ...
  • Parallel market
    Parallel market refers to an unofficial foreign exchange market tolerated by a government ...
  • Agency agreement
    Agency agreement mean contract between an insurance agent and insurance company that describes ...
  • Licensing Contracts
    A MNE must be careful to preserve its rights to receive funds from subsidiaries as royalties, ...
  • Freely floating exchange rate system
    Freely floating exchange rate system is a monetary system in which exchange rates are ...