Interest gap: Difference between revisions
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* [[Gap report]] | * [[Gap report]] | ||
* [[Gap risk]] | * [[Gap risk]] | ||
* [[Interest]] | |||
* [[Interest gap report]] | * [[Interest gap report]] | ||
* [[Liabilities]] | * [[Liabilities]] | ||
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* [[Maturity ladder]] | * [[Maturity ladder]] | ||
* [[Exposure]] | * [[Exposure]] | ||
[[Category:The_business_context]] | |||
[[Category:Financial_products_and_markets]] | |||
Revision as of 21:00, 29 April 2022
A mismatch in the timing at which interest rate assets and liabilities are repriced.
A positive gap (assets repricing more quickly than liabilities) means an exposure to falling interest rates and vice versa.
Banks and other financial institutions commonly have a 'structural' interest gap, resulting from the nature of their business and the structure of their balance sheets.
This structural interest gap is usually negative.
The negative interest gap results from shorter-term liabilities funding longer term assets.
